<p>Opening up and feeling heard are central to close relationships; in fact, understanding and disclosure with close others are beneficial for individuals’ well-being and quality of life. However, for people of color, understanding and disclosure may unfold differently depending on whether their close others share their racial/ethnic background. We examine this question with young Black, Latine, and Asian people in a cross-sectional national U.S. sample (<i>N</i> = 1285) and a weekly diary study (<i>N</i> = 101). In Study 1, young people of color felt more understood in same-race than in cross-race close relationships. Moreover, feeling understood in both types of relationships distinctly predicted depressive symptomatology one year and two years later. In Study 2, same-race understanding was uniquely associated with depressive affect and flourishing, but cross-race understanding was not. In both studies, same-race and cross-race disclosure did not differ or predict outcomes. Together, these findings suggest that young people of color disclose similarly in their close same-race and cross-race relationships but feeling understood is more directly associated with their psychological well-being.</p>