Since 1989 nearly one million immigrants from the FSU have arrived in Israel. Although well-educated on average, most of these immigrants lacked economic means. The purpose of the present study is to examine whether the presence of immigrants in schools affected the educational achievements of their Israeli-born peers. We analyzed data pertaining to 8,288 Israeli tenth graders who attended 208 schools in 1994. Respondents' records were obtained from the Ministry of Education and the Bureau of the Census.