Many advocates have called for more anti-stigma programs targeting the attitudes of children towards people with mental illness as a way to forestall subsequent prejudice and discrimination as they age and develop. In order to better understand how children stigmatize people with mental illness, we reviewed the substantial literature on social cognitive development and ethnic prejudice. This literature suggests a curvilinear relationship. Children as young as three show some endorsement of stereotypes about people of color, which slowly increases and seems to peak around age fi ve to six. Older children, interestingly, show lower rates of ethnic prejudice. Differences between mental illness and ethnicity-related stigma may infl uence the form of this relationship and we provide some hypotheses representing this difference. We then summarize the literature on stigma change, focusing on how specifi c strategies interact with what is known about social cognitive development and prejudice. Strategies that are reviewed include education, contact, social cognitive skills training, role play for empathy, peer interaction, protest and consequences. Implications for continued research in this area are highlighted throughout the article.