This study investigated the interrelation of self-esteem and racial preferences in black children. The following hypotheses were generated: (1) subjects with impaired self-concepts will be more outgroup oriented than those with unimpaired self-concepts, (2) white preferences will be greater among middle class than among lower class black children, and (3) black males will show greater white preference than black females in their choice of a black or a white puppet on each of the racial preference statements. Subjects were 60 black girls and boys, 7-8 years old, from middle class and lower class interracial schools. The instrument used to measure self-esteem was the Piers-Harris Children's Self-Concept Test. An instrument adapted from the Clark and Clark dolls test assessed racial preference. Findings indicate a significant relationship between self-esteem and racial preference. The majority of the black children preferred the black puppet in the racial preference test. No significant difference between social class or sex of subjects was found. (Author/AJ)