Used drawings and questionnaires to investigate development of images of "a Jew" and "an Arab" among Jewish Israeli 4- to 15-year-olds. Found that preschoolers expressed positive biases toward the in-group and negativism toward the out-group. Early adolescents manifested mainly negative biases toward the out-group. Children in middle childhood and mid-adolescents manifested reductions in both in-group favoritism and out-group negativity. (Author/KB)