The purpose of this study is to compare the inter-ethnic and co-ethnic friendships of 390 junior high school students in multi-ethnic neighborhoods of Montreal and Toronto. Friendship dyads were identified on the basis of reciprocal nomination as close friends. The quality of the friendships was measured by questionnaires completed by both members of each friendship dyad. Co-ethnic friendships were characterized by greater closeness and more conflict than interethnic friendships. Co-ethnic friendships were more likely than inter-ethnic friendships to survive during a 6-month interval. Inter-ethnic friendships that survived after 6 months tended to increase in conflict. Regardless of sex composition, friendships characterized by conflict and lacking in overall positive quality were more likely than others to dissolve later in the school year. Male friends who enjoyed competing with each other in nonhostile ways tended to maintain their relationships. (Contains 3 tables.)