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This study examines gender peer effects on students’ academic and noncognitive outcomes. We use a nationally representative survey of middle school students in China and focus on schools that randomly assign students to classrooms. Our findings show that having a higher proportion of female peers in class improves students’ test scores and noncognitive outcomes, which include their social acclimation and general satisfaction in school. A further decomposition of channels suggests that teacher behavior, greater student effort, and the improved classroom environment are the primary channels through which peers’ gender influences student outcomes.