Children’s understanding of race constancy and their subsequent use of race as a means of drawing inductive inferences were investigated. Race constancy was determined by children’s tendency to say that people could change category membership by changing their outside appearance. A second phase of the study measured how many race-based inferences children made relative to other social categories such as age or sex. The results indicated that children who had a better understanding of race constancy were also more likely to use race as a means of drawing inductive inferences. These findings support a developmental progression of race constancy and give insight to the development of potential bias and stereotypes.