This paper examines how prosocial motivations shape lying behavior in a strategic setting where two players privately observe and report a random draw. I develop a theoretical model predicting that individuals will lie less when others can lie on their behalf (strategic substitution), but more when their dishonesty generates positive externalities (prosocial lying). To test these predictions, I design a laboratory experiment using a two-player mind game in which both players benefit if at least one reports a match. Four treatments isolate the roles of strategic avoidance and prosocial incentives. The results show that prosocial motives outweigh lying aversion: participants lie significantly more when their dishonesty benefits others, even when they could avoid lying costs by allowing their partner to lie. These findings suggest that prosocial preferences can substantially offset the psychological costs of lying, but only when individuals’ actions are instrumental in producing gains for others.