The present study examines a causal model explaining inner city youths' drug involvement using environmental variables which previously have been investigated singly or in various combinations and shown to influence drug use: the availability of drugs in the neighborhood and at school, a view of the neighborhood as tough, the esteem given to drug using, gang-involved persons by peers, friends' substance use, and participation in drug/street culture spare-time activities. The results show friends' use of alcohol and marijuana and participation in drug/street culture out-of-school activities have strong direct effects on personal drug involvement for the Black and Puerto Rican junior high school males and females who were studied; further, friends' use of alcohol and marijuana and the status peers give to drug using, gang-involved persons have respectable indirect effects on drug involvement for the four groups. In addition to these common features, a number of differences in the factors relating to drug involvement are found in the four groups. Implications of the results for alternative methods of drug abuse prevention and treatment are discussed, as is the necessity of utilizing an environmental, sociocultural view of drug use to adequately explain youth drug taking.