The recent development of LLMs is remarkable, but they still struggle to handle cross-lingual homographs effectively. This research focuses on the cross-lingual homographs between Japanese and Chinese—the spellings of the words are the same, but their meanings differ entirely between the two languages. We introduce a new benchmark dataset named Doppelganger-JC to evaluate the ability of LLMs to handle them correctly. We provide three kinds of tasks for evaluation: word meaning tasks, word meaning in context tasks, and translation tasks. Through the evaluation, we found that LLMs’ performance in understanding and using homographs is significantly inferior to that of humans. We pointed out the significant issue of homograph shortcut, which means that the model tends to preferentially interpret the cross-lingual homographs in its easy-to-understand language. We investigate the potential cause of this homograph shortcut from a linguistic perspective and pose that it is difficult for LLMs to recognize a word as a cross-lingual homograph, especially when it shares the same part-of-speech (POS) in both languages. The data and code is publicly available here: https://github.com/0017-alt/Doppelganger-JC.git.