This paper discusses stereotypical racial beliefs among the second and third grade Hispanic children. The study developed after several students displayed stereotypical beliefs in discussions about other ethnic groups and interactions with members of other ethnic groups. The paper examines research from the 1930s to the present. This examination serves as a basis for the question: How can educators dispel racial stereotypes held by students? Using research as a point of departure, educational literature and curriculum aimed at dispelling stereotypes is described and analyzed. Several terms essential for understanding the research involving stereotypes and curriculum for dispelling stereotypes are defined including: stereotype, prejudice, racism, multicultural education, and anti-bias. Literature and curriculum that arose as a result of the earlier research is reviewed. Major issues, controversies, and contributors to the field of research of stereotypes are outlined. A synthesis and analysis of research and literature concluded that dispelling stereotypes is a crucial part of social studies instruction, but that teaching about and dispelling stereotypes can feel risky to teachers because of the sensitive issues involved. An additional conclusion was that objectives in the affective domain should be included in all social studies instruction. (Contains 50 references.) (DK)