This research examined the relationship between parental social capital and children's educational track placement in Germany, and how parental social capital differentially affected the tracking experiences of German and non-German children. Parental social capital was defined as the degree to which adults used family networks or connections to the community. Data were obtained from the 1995 wave of the German Socio-Economic Panel study, and the track placement patterns among 600 children, ages 10 to 16, of German and non-German background were investigated. The findings suggested that social capital effects were universal. Within-group analyses revealed that such effects remained limited to non-Germans, among whom parental social capital produced mixed effects. Non-German children whose parents frequently engaged in socializing activities were more likely to attend the lowest track. Non-German children whose parents maintained inter-ethnic friendships (contact with Germans) were less likely to attend the lowest track. (Contains approximately 100 references.) (KB)