Objective: This research focused on the psychosocial influences that account for differences in academic achievement and motivation among ethnic minority and ethnic majority students in Hong Kong. Methods: A cross-sectional correlation was conducted on 154 students in total. Specifically, 86 ethnic minority students and 68 local Chinese students. Researchers assessed students’ ethnic identity, academic self-concept, perceived parental expectations, ethnic/ideal self-discrepancies, actual/ideal self-discrepancies, ethnic group, academic achievement and academic motivation. Results: A significant t-test indicated greater ethnic identity in the ethnic minority group. A moderated mediation model suggested that ethnic/ideal self-discrepancies predicted a negative correlation with academic motivation through the mediation of actual/ideal self-discrepancies; a stronger effect was shown in ethnic minority students. A significant mediation of academic self-concept was found between perceived parental expectations and academic outcomes. Moderated mediations revealed that ethnic identity produced a positive correlation with academic motivation in students between ethnic groups; a stronger effect was shown in ethnic majority students. Implications: Implementation of growth mindset interventions, frequent parent communication, heritage language classes and teachers of same ethnic origin in educational institutions are recommended. Conclusion: Ethnic identity, ethnic/ideal self-discrepancies and perceived parental expectations are notable psychosocial factors to consider in the academic outcomes of all students and especially those of ethnic minority descent. All rights reserved.