Abstract
Vision-language models (VLMs) can achieve high accuracy while still accepting culturally plausible but visually incorrect interpretations. Existing hallucination benchmarks rarely test this failure mode, particularly outside Western contexts and English. We introduce MCQA, a culturally grounded multimodal benchmark built from images spanning 17 MENA countries, paired with contrastive true and counterfactual statements in English, Arabic, and its dialects. To isolate hallucination beyond raw accuracy, we propose the CounterFactual Hallucination Rate (CFHR), which measures counterfactual acceptance conditioned on correctly answering the true statement. Evaluating state-of-the-art VLMs under multiple prompting strategies, we find that CFHR rises sharply in Arabic, especially in dialects, even when true-statement accuracy remains high. Moreover, reasoning-first prompting consistently increases counterfactual hallucination, while answering before justifying improves robustness. We make the dataset publicly available for the community (https://huggingface.co/datasets/QCRI/M2CQA)).