An exploratory study was conducted to evaluate a model that predicts a five-step developmental sequence from dualistic to systematic conceptions of racism among young white adults. The model predicts developmental changes for white middle-class young adults within the context of a college cultural-diversity course. The following steps in understanding are predicted: (1) individual prejudice; (2) individual prejudice conflicted; (3) recognition of a multiplicity of inequalities; (4) coordination of a partial system of inequality; and (5) understanding of social and systemic racism. Subjects were 55 white college students (45 female and 10 male) in a cultural-diversity course required of education majors. The majority did respond at step 1 at the beginning of the course and saw racism as simply a matter of individual prejudice. None of the students reached a step-5 conceptualization, but the average student did gain one step, and more than a quarter made two- or three-step gains. The data support a cognitive dimension to the problem of coming to grips with racism. Two tables and one figure present study findings. (Contains 48 references.) (SLD)