Latino and White/European American children (N = 99; 5-11 years of age) participated in a study designed to examine their perceptions of racial/ethnic discrimination in educational settings. Children heard scenarios involving two children of different races/ethnicities, one who received a more positive outcome from a teacher than the other. Children were then asked about the reasons for the differential outcomes. The role of (a) situational information (i.e., the race/ethnicity of the children and teacher in the story, and information about the teacher's past choices); (b) social-cognitive abilities (i.e., theory of mind); and (c) child characteristics (i.e., child's race/ethnicity and racial/ethnic attitudes) in facilitating children's attributions to discrimination was assessed. Results indicated that children most frequently attributed differential outcomes to the quality of work or the ability of students. Children were most likely to make an attribution to discrimination when the teacher rewarded a same-race/ethnicity child and had a history of similar behavior. Children's attention to situational information was moderated, however, by their social-cognitive abilities. Children's own race/ethnicity and ethnic attitudes also affected their perceptions of discrimination.