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Despite evidence that acculturation hassles (such as discrimination and language hassles) relate to poorer adjustment for adolescents of immigrant descent, we know less about the psychological processes underlying these associations. In this study, we test whether reduced psychological needs satisfaction in terms of a lower sense of belonging, autonomy, and competence, mediates the associations of acculturation hassles with psychological distress and academic adjustment. Our sample included 439 seventh graders from 15 schools in Germany (51% female, M-age = 12.4 years, SD = .73). Results revealed that adolescents who experienced greater discrimination and language hassles showed a lower sense of belonging with classmates and subsequently, greater psychological distress. Those who experienced greater language hassles also exhibited a lower sense of perceived competence, and ultimately poorer academic adjustment. We conclude that self-determination theory (SDT) provides an important framework to explain key processes underlying the links between acculturation hassles with psychological distress and academic (mal-)adjustment. Strengthening belonging and competence among adolescents of immigrant descent may enhance their well-being in the face of acculturation hassles.