This article examines relationships between children and youths' judgments and their justifications of truth telling and verbal deception, in situational and cultural contexts. Han Chinese, Euro-Canadians and Chinese-Canadians, seven- to 17-years of age were presented competitive scenarios in which protagonists told either lies to protect, or truths to harm, various levels of collectivity. Participants evaluated protagonists' statements, using a 7-point scale, and justified their judgments. Cultural variations in moral evaluations emerged among the three groups of participants. Older Chinese participants reflected significant collective cultural values in their judgements; by contrast, Euro-Canadians identified more individualistically; and Chinese-Canadians demonstrated notable variability between these perspectives in their judgments. The article enhances understanding of situational and cultural sources in the development of moral reasoning within a sociocultural framework.