This study examined whether 3- to 7-year-old African American and European American children's assessment of emotion in face-only, face + body, and body-only photographic stimuli was affected by in-group emotion recognition effects and racial or gender stereotyping of emotion. Evidence for racial in-group effects was found, with European American children being more accurate when assessing emotion in European American photographs than African American photographs for some emotions. African American children were either equally proficient in recognizing emotion in African American and European American photographs or were more accurate with European American photographs for some emotions. Stereotyping of emotion was also found, with boys being more often labeled with "masculine" emotions (e.g., mad) and at least some girls being more often labeled with "feminine" emotions (e.g., happy). However, stereotyping effects were found only when the face was present in the stimuli and were not found with body-only stimuli. In-group effects, however, were not affected by type of photograph (face-only, body-only, or face + body), with children being unable to recognize at least some emotions from just the body postures alone (mad). These results have important implications for how future studies assess emotion recognition in children, particularly in terms of how emotion stimuli are constructed, the diversity of the stimuli, and who judges the stimuli. (Contains 6 tables.)