This study investigated whether a diagnostic testing condition leads to stereotype threat effects for African American children (n = 198) at an urban elementary school. Results indicated that presenting a reading test as diagnostic of abilities hindered the performance of African American children aware of racial stereotypes but not of those unaware of such stereotypes. For stereotype-aware children, the effect of stereotype threat on performance was moderated by level of domain identification such that the effects were most pronounced among children placing greater value on achievement. In addition, domain identification contributed to greater anxiety and lower self-efficacy, suggesting that it is a primary vulnerability factor for stereotype threat effects. Implications for educational equity are discussed, as well as suggestions for developing interventions capable of attenuating stereotype threat effects among children.