Guided by the Theory of Racial Socialization in Action (TRSA; Smith-Bynum in press), this study examined observed caregiver-provided ethnic-racial socialization in response to a school-based discriminatory dilemma. Forty-five Black and 36 Latinx caregivers (88% mothers) with low-income and their children (M[subscript age] = 11.09, SD = 0.29; 46.3% female) participated in Dallas, Texas from 2018 to 2019. Dyads responded to a hypothetical scenario in which a school counselor makes a discriminatory comment to the child. Results of a factor mixture analysis suggested that caregivers engaged in the dialogue using one of four approaches: "Low-engaged," "Legacy," "Racial Literacy," or "High-engaged." Profiles were found to differ significantly by the race/ethnicity and language of caregivers and were associated with youth's concurrent behavioral engagement (R[superscript 2] = 0.04).