This paper discusses a study based on current research and literature regarding racial stereotypes in children. The primary purpose of the study was to investigate the effects of social studies instruction on existing racial stereotypes and on the development, if any, of new stereotypes. It was hypothesized that the described instructional program would contribute to the dispelling of existing stereotypes as well as to the prevention of new stereotypes. Thirty subjects, ages 7 through 9, participated in this study. All the subjects spoke Spanish as a primary language, but while all of the subjects in this study were of Hispanic origin, the school setting contained a diverse ethnic population. Each subject was administered a pretest independently to collect baseline data for the entire class, as well as subgroups within the class. During a 3-week instructional program anecdotal records were kept that included student responses in discussions and teacher observations of student behavior in the classroom and on the playground. Teacher observation of student behavior during the unit of study guided many of the discussions. The instructional program centered around a unit on the local community relating to an appreciation for people from many cultures. The direct lessons and discussions aimed at dispelling stereotypes were modified to respond to observations. A posttest was administered at the end of the 3-week instructional program. The study provided evidence as hypothesized, that the instructional program had a positive impact on eradicating racial stereotypes. (Contains 31 references.) (DK)