This paper addresses the key findings of a previous study exploring the relationship between ethnicity and substance abuse and discusses them in relation to the school's role in prevention. Substance abuse cannot be addressed in ethnic communities without also addressing poverty, lack of adequate housing, health and child care, education, employment, and the underlying Ethnic Groups; *Ethnicity; of racism. Since educational institutions have traditionally been a stepping stone for underprivileged minority groups, schools have a role to play in adopting policies and programs demonstrating an appreciation for our rich cultural heritage. Components for creating a multicultural school environment are as follows: (1) active involvement of the school community, including representatives from the ethnic groups in the school; (2) a school policy committed to all students successfully receiving an education affirming human diversity; (3) redistribution of power within the school and classrooms to include cooperative learning, peer resource programs, cultural sensitivity training, and instruction in the rules of the culture of power; (4) high expectations by teachers for ethnic minority and youth; and (5) infusing curricula with multicultural content, valuing primary languages, avoiding the labels of ethnic-specific learning styles, and hiring ethnic minority teachers when possible. Key findings from "Prevention Research Update Number Two" for Asian American, Black, Hispanic, and Native American youth are summarized in four lists. A list of 80 references is included. (CJS)