The impact of social group information on the learning and socializing preferences of Hong Kong Chinese children were examined. Specifically, the degree to which variability in racial out-group exposure affects children's use of race to make decisions about unfamiliar individuals (Chinese, White, Southeast Asian) was investigated. Participants (N = 212; Mage  = 60.51 months) chose functions for novel objects after informants demonstrated their use; indicated with which peer group member to socialize; and were measured on racial group recognition, preference, and identification. Overall, children preferred in-group members, though out-group exposure and the relative social status of out-groups mattered as well. At a young age, children's specific experiences with different races influence how they learn and befriend others across racial group lines.