The present study investigated possible ethnic contributions to overly positive self-perceptions in middle childhood. The goals of this study were threefold. First, the present study sought to replicate the intriguing findings reported by Zakriski and Coie that African American children overestimate their acceptance, and European American children underestimate acceptance by other-ethnicity peers. Second, this study examined possible explanations for ethnic differences in the pattern of perceptual bias. Finally, this study extended prior research by examining ethnic differences in the accuracy of children's perceived peer acceptance. Archival data consisting of 826 children in third (N = 284), fourth (N = 241), and fifth grades (N = 301) were used in the present investigation; 237 of which were African American children, and 589 were European American children. Results of this study replicated the findings of Zakriski and Coie. Moreover, African Americans' overestimation and European Americans' underestimation of acceptance by other-ethnicity peers was found to be attributable to more positive views of self and others among African American children relative to European American children. Finally, children were found to be more accurate about judging their acceptance by peers of the same ethnicity than those of a different ethnicity. Possible explanations of what causes African American children to have more positive views of self and others than European American children are discussed.