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In this research, we created and tested the validity of a Marginalized-Group-Focused Diversity Climate Scale (MGF-DCS) following Hinkin’s (1998) best practices. Previously, no measure of diversity climate has been validated. Furthermore, addressing challenges concerning the basis of diversity climate perceptions, we reviewed disparate diversity climate definitions and scales to identify its core components and sources, focusing on the treatment of organizational members who identify as marginalized group members. Using full-time employee samples (N = 1639), tests of content validity (study 1), exploratory factor analysis (study 2), confirmatory factor analysis (study 3), convergent and discriminant validity (study 4), and criterion validity (study 5) were conducted. Results suggest that the MGF-DCS comprises three subscales: (1) interpersonal valuing of marginalized groups; (2) organizational representation and inclusion of marginalized groups; and (3) organizational anti-discrimination. Furthermore, the MGF-DCS exhibited measurement invariance across marginalized group identification. In study 5, using the MGF-DCS, we tested how perceptions of diversity climate predict organizational and personal outcomes, as moderated by participants’ marginalized group identification. In general, the more participants perceived their workplaces to have a positive diversity climate, the better they saw social dynamics in their workplace (e.g. higher cohesion) and the better their personal outcomes (e.g. lower job stress); in some cases, these benefits were stronger for employees identifying as marginalized group members (e.g. less experienced discrimination). Thus, the MGF-DCS provides a reliable and valid assessment of diversity climate in organizations that can be used to advance theory, research, and diversity management practice.