This study investigated how peers can contribute to cultural minority students’ cultural identity, life satisfaction, and school values (school importance, utility, and intrinsic values) by talking about cultural values, beliefs, and behaviours associated with heritage and mainstream culture (peer cultural socialisation). We further distinguished between heritage and mainstream identity as two separate dimensions of cultural identity. Analyses were based on self-reports of 662 students of the first, second, and third migrant generation in Germany (Mean age = 14.75 years, 51% female). Path analyses revealed that talking about heritage culture with friends was positively related to heritage identity. Talking about mainstream culture with friends was negatively associated with heritage identity, but positively with mainstream identity as well as school values. Both dimensions of cultural identity related to higher life satisfaction and more positive school values. As expected, heritage and mainstream identity mediated the link between peer cultural socialisation and adjustment outcomes. Findings highlight the potential of peers as socialisation agents to help promote cultural belonging as well as positive adjustment of cultural minority youth in the school context.