This study explores children's responses to animated, ficational characters when honesty is put to the test through behaviors of racialized, peer-like media characters. Children (n = 178, aged 8-13 years) viewed an episode of a popular U.S. television program, Nickelodeon's The Loud House, with a dishonest White character (Lincoln) or an honest Black character (Clyde). The findings confirm that Clyde who is portrayed as honest is seen as more honest, higher in morality, and liked more than Lincoln who deliberately lies. Race did not impact how much children like the White character (Lincoln), but Black children reported liking the Black character (Clyde) more than White children. Children who have previously seen the show are more likely to like and have a stronger parasocial relationship with the characters, with a regression pinpointing this is most important for Lincoln, the White character. The main finding that the regression analyses tease out is that it is the parasocial relationship that is significantly positively related to how likable and moral the children rate the characters, not race and racial attitudes. Implications are discussed within a context of mediated contact, social construction of identity and groups, and moral judgements. Prior State of Knowledge: Previous research suggests that youth can learn moral behaviors from media characters. However, few television studies with youth have examined character honesty and race in a research investigation. Novel Contributions: Children who feel emotionally connected to a media character can be more accepting of problematic behavior of the character. Racial bias and preferences for Black or White media characters indicate that racial awareness is salient for youth. Practical Implications: Children's relationships with media characters can have implications on their learning about consequences of moral behaviors. Practitioners should be thoughtful in their representations of characters, particularly children of color, reaching for more positive portrayals of children of color as a means to mitigate judgment of others and enhance interracial relationships.