Teen cannabis smokers are 60 per cent more likely to drop out of high school than their non-smoking peers, and are more likely to use other drugs and attempt suicide.
The latest Australian research has also found there is no "safe" level of adolescent cannabis use. There are poorer educational outcomes and increased risks even for those using the drug less than one a month.
Amid calls to legalise the supply of medicinal cannabis, the authors of the study, which is published in the Lancet, say the results are a timely reminder of the drug's harm.
"Policymakers need to be aware that the early use of cannabis is associated with a range of negative outcomes for young adults that affects their health, wellbeing and achievement," said lead researcher Dr Edmund Silins, of the University of NSW's National Drug and Alcohol Research Centre (NDARC).
"Any efforts to reform cannabis legislation should be carefully evaluated to ensure they reduce adolescent cannabis use and prevent potentially adverse effects on adolescent development."