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Social chatbots are aimed at building emotional bonds with users, and thus it is particularly important to design these technologies so as to elicit positive perceptions from users. In the current study, we investigate the impacts that transparent explanations of chatbots’ mechanisms have on users’ perceptions of the chatbots. A total of 914 participants were recruited from Amazon Mechanical Turk. They were randomly assigned to observe conversations between a hypothetical chatbot and a user in one of the two-by-two experimental conditions: whether the participants received an explanation about how the chatbot was trained and whether the chatbot was framed as an intelligent entity or a machine. A fifth group, who believed they were observing interactions between two humans, served as a control. Analyses of participants’ responses to the postobservation survey indicated that transparency positively affected perceptions of social chatbots by leading users to (1) find the chatbot less creepy, (2) feel greater affinity to the chatbot, and (3) perceive the chatbot as more socially intelligent, though these effects were small. Moreover, transparency appeared to have a larger effect on increasing the perceived social intelligence among participants with lower prior AI knowledge. These findings have implications for the design of future social chatbots and support the addition of transparency and explanation for chatbot users.