This study investigated adolescents' own and parental expectations about cross-group friendships between peers from different socio-economic status (SES). Nepalese adolescents ( N = 389, M age = 14.08; grades: 7-10) evaluated an ambiguous peer encounter between a low and a high SES peer. Overall, adolescents attributed negative intentions to high-SES more than to low-SES peers. Most adolescents expected that high- and low-SES targets could not be friends, that parents of high-SES targets would disapprove of cross-group friendships, referencing social hierarchies and reputation, and that parents of low-SES targets would support friendship citing moral concerns and social mobility. Most adolescents were aware of systemic reasons that underlie SES biases. Given that low SES adolescents often suffer when excluded from peer experiences, these findings indicate that parental socialization strategies should focus not only on protecting children from experiences of discrimination but also from experiences related to social inequalities and a lack of social mobility.