Research on segregation's impact on educational outcomes has been extensive worldwide. Given Sweden's immigration levels and persistent patterns of economic residential segregation, this research aims to investigate how students' educational outcome is associatedwith area characteristics such as socio-economic deprivation, presence of residents with foreign background, and economic segregation. Results are evaluated for all students then separately by gender and students’ background status. Educational outcome is measured with the average merit value for students who finished the ninth grade in 2023. Regression analysis has been used as a method to conduct results. Surprisingly, economic residential segregation alone is associated with higher average school results. Yet, economic residential segregation is no longer a significant predictor of educational outcomes once other factors such as socio-economic deprivation and the share of persons with foreign background are accounted for. The findings suggest that a high proportion of residents with higher levels of education in the municipality has the most consistent and positive association with educational outcomes across all groups. Additionally, no significant association was found between educational outcomes and the presence of residents with foreign background, once socio-economic deprivation has been accounted for. In terms of gender, girls appear less affected by area characteristics compared to boys.