Abstract Intergroup attitudes were assessed in 7 and 10 years old European American and African American children from ethnically heterogeneous schools and in 7 and 10 years old European American children from ethnically homogeneous schools in order to test hypotheses about racial biases and judgments regarding cross‐race peer interactions (N = 302). Using an Ambiguous Situations Task, the findings revealed that European American children attending homogeneous schools displayed racial bias in their interpretations of ambiguous situations as well as in their evaluations of cross‐race friendship. Bias was not found, however, in the interpretations and evaluations of European American or African American children from heterogeneous schools. This study is the first to empirically demonstrate significant and direct relationships between intergroup contact in the school environment and children's intergroup biases as well as judgments about the potential for cross‐race friendships. Copyright © 2010 John Wiley & Sons, Ltd.
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