This chapter reviews recent research on the antecedents of cross-ethnic friendships, on friendship stability and quality, as well as on their consequences. It discusses structural, intergroup, and family factors and its relationship to cross-ethnic friendships. Research shows that cross-ethnic friendships influence the development of many social and emotional qualities like solving conflicts and positively influences self-esteem and socio-emotional support. Further studies suggest that cross-ethnic friendships provide unique psychosocial benefits as they are associated with social competence, and less victimization by peers. With regard to intergroup factors, acculturation attitudes, intergroup attitudes, peer group norms, and contact conditions all have an influence on whether children and adolescents are likely to have cross-ethnic friends. Only recently have researchers begun to explore the influence of parents on children's decision making about intergroup peer relations. Research has now shown that having cross-ethnic friendships has positive psychosocial consequences, which include better social adjustment and more positive attitudes towards ethnic out-groups.