PURPOSE: Failing USMLE Step 1 is a destabilizing experience associated with increased psychological distress, shame, and isolation. Students who fail are at increased risk for burnout, anxiety, and disengagement from learning. Despite these challenges, few studies have explored interventions to support students during remediation. Neer-peer mentorship can provide emotional and social support, as well as improve confidence during stressful academic transitions. This project explores the role of a near-peer mentorship program in fostering psychological well-being and resilience among students following Step 1 failure. METHODS: A mixed-methods pre-post intervention evaluated changes in psychosocial well-being of participating students during a 12-week near-peer mentorship program led by senior medical students who successfully remediated Step 1. Participants were medical students at a Midwest medical school who did not pass Step 1 on their first attempt, were enrolled in a mandatory remediation course, and opted into the adjunctive near-peer program. Biweekly semi-structured sessions addressed topics such as normalization of failure, isolation, emotional regulation, and confidence rebuilding. RESULTS: 16 senior medical students served as mentors. Of 38 eligible mentees, 87% attended at least one session. 42% completed all 5 sessions, indicating completion of the program. Qualitative findings showed that participants felt better after sessions and reported reduced feelings of isolation during remediation. Major themes included confidence rebuilding, normalization of failure, and accountability. CONCLUSION: Step 1 failure is not only an academic setback, but also a significant emotional challenge contributing to the success of remediation. Structured near-peer mentorship was highly valued and improved the well-being of students by connecting them with mentors who had experienced Step 1 failure themselves, reducing feelings of isolation and fostering a sense of community.