The theory of perceptual narrowing posits that the ability to make perceptual discriminations is very broad early in development and subsequently becomes more specific with perceptual experience (Scott, Pascalis, & Nelson, 2007). This leads to the formation of biases (Pascalis et al., 2002; 2005; Kelly et al., 2007), including the other-race effect (ORE). Behavioral and electrophysiological measures are used to show that by 9-months-of-age, infants exhibit a decline in ability to distinguish between two faces from another race compared to two faces from within their own race. Significant differences in the P400 component revealed a dampening of response to other-race compared to same-race faces for 9-month-olds only. More negative N290 amplitudes in response to happy compared to sad faces were found for 5-month-olds only. Nine-month-olds did not show different responses based on emotion, indicating that race was interfering with the processing of emotion.