Although the existing transnational literature on xenophobia is voluminous, it has mostly neglected the effect of urban status on intergroup relations. This article addresses this shortcoming by integrating theories from urban sociology with work on in-group-out-group dynamics drawn from contact theory, group threat theory, social identity theory, and social dominance theory. Using a sample drawn from the sixth wave of the European Social Survey, I construct a critical experiment modeling the effect of both residential status and out-group presence on xenophobia in the Scandinavian states. My results point to inconsistent influences of urbanism on xenophobia, but a robust negative influence of percent foreign on xenophobia (i.e., partial support for contact theory). Conversely, my critical experiment, which takes the form of interacting residential status (urbanity) and foreign percentage, is positive and consistent with group threat theory, social identity theory, and social dominance theory. I conclude with speculation on how sample selection and composition plays into these findings, as well as with suggestions for future research.