Previous research has emphasized the importance of active citizenship in the early years for the development of a tolerant and cohesive Australian society. This paper presents findings related to young children's beliefs about exclusion based on gender and race. The findings draw from a larger study exploring the development of children's moral and social values and teachers' beliefs and practices related to teaching for moral development in the early years of school in Australia. This current study examined reasoning about exclusion in early childhood with children aged five-eight years. One hundred children from seven schools (Preparatory to Year 3) answered questions relating to two scenarios where the children had to make a decision about whether to include others of different gender or race in their play. The majority of children believed that others should be included in their play, regardless of their gender or race. When asked to explain, the children primarily gave reasons related to moral concern and fairness. They were then asked whether they would continue to include or exclude if their friends (social consensus) or teachers (authority) suggested otherwise. Most maintained their beliefs when beliefs to the contrary were voiced by their peers and teachers. The implications of these responses are discussed. (Contains 2 tables and 1 footnote.)