The ability of American Indian children (N = 99; 7-12 years of age) to reframe a memory of a friend's seemingly mean-spirited actions (Story 1) after hearing the friend's perspective detailing her/his good intentions (Story 2) was explored. Children in a control group heard an unrelated Story 2 and did not alter their retelling of Story 1. Good verbal skills facilitated the integration of the friend's perspective in memory for the children who heard the friend's explanation. Higher scores on the working memory and inhibition tasks were associated with higher verbal ability scores. Older children had better working memory and inhibitory skills than younger children. Cultural engagement predicted better social competence ratings but not higher memory reframing scores as predicted.