Immigrant youth often rebuild their friendships and other social networks after arriving in a new country. The difficulties involved can threaten their psychosocial development. Formation of social networks needs to be understood within the macro sociocultural context that shapes the experience. Nonetheless, the current literature on social network formation rarely captures that context. Knowledge about immigrant youths' social network, for example, is often embedded in assimilation, ethnic identity, and adaptation literature. This paper examines how the sociocultural context enables immigrant youth to rebuild their friendship networks. A critical ethnography was conducted in the northwest region of the United States. Sixteen Taiwanese immigrant youth and their parents (N = 13) participated in the study. Data collection consisted of semi-structured in-depth interviews, a demographic questionnaire, and participant observations. The findings showed that because of limited English proficiency, the youth kept at a distance from American peers to avoid nervousness and embarassment. Further analysis, derived from Xenophobia, found that limited English proficiency increases segregation between American peers ("we") and immigrant youth ("the other"). The English as a Second Language program inadvertently perpetuates the immigrants' sense of "otherness" and increases the odds of their becoming targets of discrimination. A protective factor for these youths is living near an ethnic community because the inclusion of coethnics increases new friendship networks. Knowledge about the teen culture in coethnics' countries of origin (China, Hong Kong, or the United States), also influences their selection of friends.