Adolescents, in general, are spending more time in online environments, and understanding how youth navigate these contexts may be particularly important for addressing and improving outcomes among sexual and gender minority youth. Taking a developmental perspective, this review discusses online environments as contexts of both risk and resilience for youth in gender and sexual minority communities. In particular, we review literature highlighting how online environments provide a context for many salient aspects of adolescent development, including the promotion of identity development and the exploration of intimate, romantic and sexual behavior. The potential for online environments to serve as contexts for discrimination and victimization for gender and sexual minority youth are also discussed. Specific recommendations for parents, teachers and sexual and gender minority youth themselves are made for creating and promoting positive wellbeing in online spaces.