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Abstract Despite increasing racial diversity in the United States, and the particular growth of multiracial populations, questions about how children perceive others’ (bi)racial identities remain poorly understood. In two preregistered studies, we asked White and racially minoritized American children (N = 157; 4–11‐years old) and White and multiracial adults (N = 226) how acceptable it was for monoracial people (Black or White; Study 1) and/or biracial people (Black–White; Studies 1 and 2) to claim either a monoracial or biracial identity. Consistent with past research with adults, children said that monoracial people should claim (only) the monoracial identity which matched their ancestry. Judgements about biracial identity were more variable. White and multiracial adults (Study 2) reported that biracial targets could claim a racial identity that matched either or both of their parents, with biracial claims being evaluated most positively. Exploratory analyses on children's judgements about biracial people's identity claims (Study 1) revealed different patterns of development for White children and children from minoritized backgrounds. Whereas White children became more likely with age to report that all identity claims were acceptable, children from racially minoritized groups became more likely with age to endorse biracial targets who claimed a biracial identity. These findings suggest that children's own racial background and age may have a larger impact on their perceptions of biracial people's identities, compared to their perceptions of monoracial people's identities.