Sports participation has been shown to positively affect youth well-being. However, research has also shown that sports environments can be unsafe for lesbian, gay, bisexual, transgender, and queer (LGBTQ) youth. Using data from a large study on school-related experiences of LGBTQ secondary students who reported on their extracurricular activities in school, (N = 15,813), this study examined LGBTQ youth's participation in school sports, the effects of participation on well-being and school belonging, and whether any such benefits of participation varied by transgender status and gender binary identity. Over a quarter of LGBTQ respondents in our study had participated in school sports, and being transgender and being nonbinary were related to a lower likelihood of sports participation. Transgender males and transgender nonbinary youth had the lowest likelihood of sports participation. In general, LGBTQ youth who participated in sports had increased well-being and greater school belonging. However, in regard to self-esteem, transgender nonbinary youth appeared to have greater benefit from participating in sports than did their transgender male and transgender female peers. Considering these results, schools have a responsibility to ensure that school sports are safe and welcoming for LGBTQ youth.