Research has established that school performance relates: (i) negatively with poor mental health during childhood and (ii) positively with family socioeconomic resources. In this article, we examine the potentially moderating effects of family resources on the relationship between school performance and poor mental health, using register data covering all children born in Sweden in 1990. The dependent variable is graduation from upper secondary school. We perform separate analyses for girls and boys. Our results indicate that compensatory effects of the socioeconomic resources of the family on the risk of graduation failure.