Everyday forms of political engagement, such as civic participation and collective action, have been recognized as a crucial factor for positive youth development, but less is known about their resilience effects on youth from marginalized populations, especially in less democratic societies. The present study investigated experiences of everyday political engagement among sexual minority youth in China and examined their compensatory and protective effects against heterosexist victimization. A sample of 793 Chinese sexual minority youth was included in the study. The results showed that collective action operated as a protective factor in buffering the effect of heterosexist victimization, such that its association with academic engagement was not significant among those with higher levels of collective action. In contrast, civic participation served the compensatory function and was associated with greater academic engagement, a stronger sense of school belonging, and fewer depression symptoms, but it did not protect against the negative effects of heterosexist victimization. The findings highlight the importance of identity‐based action among sexual minority youth and provide insight into the differential resilience effects of everyday political engagement. The study has implications for fostering resilience among sexual minority youth with victimization experiences in school and counseling settings. Highlights The study examines the resilience effects of everyday political engagement among sexual minority youth Collective action serves a protective function and civic engagement acts as a compensatory factor Collective action buffers the effect of heterosexist victimization on academic engagement The adverse effects of victimization are not found among those with higher collective action Civic engagement is associated with positive outcomes but does not protect against victimization