Transgender and gender diverse (TGD) adolescents experience mental health challenges at higher rates than cisgender peers due to a combination of minority stress and gender dysphoria. Many TGD youth use video games to cope with stress and access informal networks of support. However, very little is known about the potential positive influence avatar customization has for this group of youth. To address this gap in the literature, in-depth, semi-structured qualitative interviews were conducted with ten TGD adolescents about their experiences with avatar customization. Thematic analysis revealed four primary themes including that: (1) video game avatar customization offers a low stakes environment for gender exploration; (2) avatars offer both internal and external validation of gender identity and transition goals; (3) avatars allow players to enact aspirational appearance goals; and (4) video games and avatars offer immersion and escapism for TGD adolescents. These novel findings underscore the range of positive impacts avatar customization can have for TGD adolescents, particularly for youth with gender dysphoria. Video game avatar customization can be a key part of the gender exploration and affirmation for some TGD adolescents.