This study investigated the relationship between self-compassion, caudate functional connectivity during self-appraisal, and adolescent suicide ideation. 79 depressed youth and 36 healthy controls underwent fMRI while evaluating self-descriptive phrases. Self-compassion was associated with stronger left caudate connectivity with bilateral posterior superior temporal sulcus/temporoparietal junction, left middle temporal gyrus (MTG), and left middle occipital gyrus during positive versus negative self-appraisals. Stronger left caudate-left MTG connectivity explained the association between higher self-compassion and lower suicide ideation, even after controlling for other factors. Left caudate to MTG connectivity during positive self-referential processing may be a potential biomarker for suicide risk reduction interventions.