Increasing substance use and decreasing well‐being are typical in adolescence, yet how social contexts shape disparate development during this time is less well‐understood. A latent growth class analysis was conducted that identified groups of early (N = 706; Agem = 12.20) and middle (N = 666; Agem = 14.38) adolescents distinguished by rates of substance use and well‐being over three years. In both cohorts, the largest group reported low substance use and high well‐being, with a smaller group exhibiting maladaptive trajectories for both substance use and well‐being. Two additional groups were identified during middle adolescence characterized by either low well‐being or high substance use. Family connectedness was a protective factor, while high peer connectedness was a risk factor for substance‐use groups and low peer connectedness for languishing.