This study examined cross-cultural differences and similarities in children's moral understanding of individual- or collective-oriented lies and truths. Seven-, 9-, and 11-year-old Canadian and Chinese children were read stories about story characters facing moral dilemmas about whether to lie or tell the truth to help a group but harm an individual or vice versa. Participants chose to lie or to tell the truth as if they were the character (Experiments 1 and 2) and categorized and evaluated the story characters' truthful and untruthful statements (Experiments 3 and 4). Most children in both cultures labeled lies as lies and truths as truths. The major cultural differences lay in choices and moral evaluations. Chinese children chose lying to help a collective but harm an individual, and they rated it less negatively than lying with opposite consequences. Chinese children rated truth telling to help an individual but harm a group less positively than the alternative. Canadian children did the opposite. These findings suggest that cross-cultural differences in emphasis on groups versus individuals affect children's choices and moral judgments about truth and deception.