This research examined whether the impact of overheard rumors on children's memory for their experiences varies as a function of social processes. The results of two experiments revealed that the very same errant rumor had different consequences for children's recollections depending on the degree and type of social interactions they had with peers after exposure to the rumor. In both experiments, 3- to 5-year-olds overheard a false rumor about a recently experienced event and then were interviewed about the event 1 week later. In Experiment 1, children were more likely to report experiencing rumored-but-nonoccurring information if they were allowed to interact naturally with peers following exposure to the rumor than if they were prevented from peer exchange. In Experiment 2, exposure to the rumor induced greater memory contamination if it was planted among familiar peers than if it was encountered among strangers.