Since September 11, 2001, ethnic tensions involving persons of Middle Eastern descent have increased in the United States. This study examined the peer relationships of 748 fifth-grade students of different ethnic groups both at one month and eight months post-9-11. Results indicated that only Middle Eastern children showed a large drop in positive peer nominations and popularity over the course of the school year. Bullying of Middle Eastern and Hispanic students also showed a significant increase. Given that peer problems and bullying are detrimental to the school climate and promote violence, the need for proactive school-based programs to foster racial tolerance is discussed. (Contains 3 figures and 1 note.)