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Around the globe, individuals are affected by exclusion, discrimination, and prejudice targeting individuals from racial, ethnic, and immigrant backgrounds as well as crimes based on gender, nationality, and culture (United Nations General Assembly, 2016). Unfortunately, children are often the targeted victims (Costello & Dillard, 2019). What is not widely understood is that the intergroup biases underlying systemic racism start long before adulthood with children displaying notable signs of intergroup bias, sometimes before entering grade school. Intergroup bias refers to the tendency to evaluate members of one’s own group more favorably than someone not identified with one’s group and is typically associated with prejudicial attitudes. Children are both the victims and the perpetrators of bias. In this review, we provide evidence of how biases emerge in childhood, along with an analysis of the significant role of intergroup friendships on enhancing children’s well-being and reducing prejudice in childhood. The review focuses predominantly on the context of race, with the inclusion of several other categories, such as nationality and religion. Fostering positive cross-group friendships in childhood helps to address the negative long-term consequences of racism, discrimination, and prejudice that emerges in childhood and continues through to adulthood.