The present experiment examined identity denial and reduced empathy for in-group (vs. out-group) targets as a function of the racial composition of their social networks. Black participants rated in-group (Black) targets as more weakly racially identified and expressed less empathy for in-group targets with cross-race close friends versus same-race close friends or no friends. Furthermore, the effect of social network composition on empathy was mediated by perceived racial identity. These findings were limited to the in-group target. Although the out-group (White) target was rated as more weakly identified when shown with cross-race close friends versus same-race close friends or no friends, neither social network composition nor perceived racial identity predicted empathy for the out-group target. These findings extend previous research on identity denial and suggest that, for Blacks, closely associating with Whites undermines the usually robust pattern of in-group empathy.