AbstractMore than 20% of US youth are immigrants or the children of immigrants, and Mexicans represent the largest immigrant group. In an increasingly pluralistic society, research is needed to elucidate how risk and protective/promotive factors in immigrants' life contexts are associated with their acculturation. Within the Integrative Risk and Resilience framework, we examined the mediating role of discrimination in the association between neighbourhood diversity and acculturation strategies of 334 Mexican‐origin youth over a five‐year study (Mage = 12.80; 44.3% female). Neighbourhood diversity was computed using American Community Survey data. Perceived discrimination was self‐reported. Acculturation profiles, including transition profiles, were adopted from a previous study. Findings indicated that Mexican‐origin youth living in more diverse neighbourhoods were more likely to demonstrate an Integrated than a Moderately Assimilated profile. Over time, they were more likely to develop a Stable Integrated or Progressive than a Regressive transition profile. No mediating effect of discrimination was found. These findings imply that diverse neighbourhoods promote integrated acculturation strategies, benefiting both Mexican‐origin youth and the evolving pluralistic US society.