We examined whether teacher-child racial congruence and child race moderated the association between children's emotion situation knowledge and the dimensions of teacher-child relationship quality (i.e., closeness, conflict, and dependency). We also investigated these dimensions as mediators linking emotion situation knowledge and later school readiness. Participants were 303 White and African American preschoolers and their teachers who were also racially diverse. For White preschoolers, teacher-child closeness was more likely and teacher-child conflict and dependency were less likely when their teachers matched them in race. For African American children, teacher-child conflict and dependency were more likely when their teachers matched them in race. Emotion situation knowledge and teacher-child closeness were positively related to later school readiness. Findings are discussed in the context of recommendations for policies and practices encouraging culturally responsive, equitable, and positive social-emotional instructional approaches that motivate, support, and sustain positive teacher-child relationships in early childhood classrooms.