A 1-year, school-based collaborative research project explored ways in which children from 5 to 10 years of age learn social concepts related to acceptance and understanding of human diversity, strategies of conflict resolution, social problem solving, and ways to promote peace. The study was carried out by an educational anthropologist, three teachers at a Friends (Quaker) elementary school, and a research assistant. An ethnographic case study approach which employed repeated participant observations and spontaneous and semi-structured interviews with teachers and students was used. Videotapes of activities, discussions, and classroom and playground interactions were made and analyzed. Findings document group processes and classroom discourse, planned and spontaneous activities, and children's perspectives on issues related to their school, strategies for social problem solving, and peace. This paper presents an initial analysis of over 200 hours of observation data and interviews with teachers and children. Findings show the importance of the consistent creation of an open and supportive classroom climate which encourages children's self-expression, appreciation of others who have worked for social change, and repeated experiences in group processes dealing with social problem solving, consensus decision making, and centering techniques. (RH)