This study examined the intersecting experiences of perceived racial discrimination, poverty-related stress (PRS), and civic efficacy with psychological functioning in preadolescents. The sample consisted of 129 low-income, racially and ethnically diverse preadolescents. Hierarchical linear regression analyses found that perceived racial discrimination and PRS were associated with greater psychological problems, as reported by parents and youth. High levels of both perceived racial discrimination and PRS together resulted in even higher psychological problems, as reported by parents. Lastly, civic efficacy significantly moderated the relationship, where higher civic efficacy in the presence of both discrimination and PRS was associated with fewer psychological problems. In conclusion, these findings suggest that considering both stressors as intersecting rather than additive stress may better explain the mental health disparities among low-income and Black, Indigenous, and People of Color (BIPOC) youth. Additionally, empowering resources, such as civic efficacy, may promote positive development.