The present study examined Chinese children’s moral evaluations of truths and lies about one’s own pro-social acts. Children ages 7, 9, and 11 were read vignettes in which a protagonist performs a good deed and is asked about it by a teacher, either in front of the class or in private. In response, the protagonist either tells a modest lie, which is highly valued by the Chinese culture, or tells an immodest truth, which violates the Chinese cultural norms about modesty. Children were asked to identify whether the protagonist’s statement was the truth or a lie, and to evaluate how ‘good’ or ‘bad’ the statement was. Chinese children rated modest lies more positively than immodest truths, with this effect becoming more pronounced with age. Rural Chinese children and those with at least one nonprofessional parent rated immodest truths less positively when they were told in public rather than in private. Furthermore, Chinese children of parents with high collectivism scores valued modest lies more than did children of parents with low collectivism scores. These findings suggest that both macro- and micro-cultural factors contribute significantly to children’s moral understanding of truth and lie telling.