This study examined the relationships between school-level school climate and race differences in student grades, accounting for school sociodemographic composition. We found that schools with more positive school climates had smaller race differences in student self-reported grades. The moderating effect of school climate remained after accounting for the sociodemographic composition of the school and students' own perceptions of climate at their school. This moderating effect was confounded by school grade band (i.e., elementary, middle, or high) since perception of positive school climate was lower in middle and high schools than in elementary schools. Despite the difficulty of disentangling school climate from grade band, the findings suggest school improvement strategies focused on school climate may promote racial equity in academic outcomes. School practitioners' efforts to improve the school climate may also contribute to racial equity in academics. [This article was co-authored by the Research and Evaluation Team.]