This paper examines the development of inter‐ethnic friendships between immigrants and Canadians. It uses longitudinal data from three waves of the Canadian LSIC survey, in which newly arrived immigrants were followed during the first 4 years of settlement. It is found that pre‐migration characteristics play an important role in the development of inter‐ethnic friendships: immigrants who arrive at a younger age and for economic reasons, as well as those who are highly educated and have a cross‐ethnic partner at the moment of arrival, establish more inter‐ethnic friendships over time. In addition, post‐migration characteristics affect the formation of inter‐ethnic friendships. Such friendships are more common among immigrants who embrace Canadian traditions and acquire the host‐country language, as well as among those who work in international settings and inhabit ethnically mixed neighborhoods. The effects of pre‐migration characteristics are partially mediated by post‐migration characteristics. Our findings point out that economic, cultural, and spatial integration are all conducive to inter‐ethnic friendships.