High risk substance misuse, trauma and gang involvement are prevalent in adolescents and often occur with youth involved with the youth punishment system. Evidence suggests that system involvement is related to trauma histories, substance misuse as well as gang involvement. This study investigated the associations between individual, family, and peer factors, and the moderating role of trauma and their relationship to problem drug and alcohol use among Black girls involved with the youth punishment involvement. Cross-sectional data were collected from 188 Black girls in detention. Measures assessed were trauma, alcohol use, drug use, risky sex, caregiver support, age, and problem drug and alcohol misuse. Significant findings indicated that higher rates of trauma, drug misuse rates, and gang involvement were correlated with problem drug and alcohol misuse. These findings highlight how individual and peer factors can influence problem substance misuse, their behavior and peer relationships among Black girls in detention.