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Participants are more accurate at remembering faces of their own relative to another ethnic group (own-race bias, ORB). This phenomenon has been explained by reduced perceptual expertise, or alternatively, by the categorization of other-race faces into social out-groups and reduced effort to individuate such faces. We examined event-related potential (ERP) correlates of the ORB, testing recognition memory for Asian and Caucasian faces in Caucasian and Asian participants. Both groups demonstrated a significant ORB in recognition memory. ERPs revealed more negative N170 amplitudes for other-race faces in both groups, probably reflecting more effortful structural encoding. Importantly, the ethnicity effect in left-hemispheric N170 during learning correlated significantly with the behavioral ORB. Similarly, in the subsequent N250, both groups demonstrated more negative amplitudes for other-race faces …