Most research on caste prejudice is rooted in personality and individual difference approaches. As a result, there has been limited understanding of caste prejudice as an aspect of group psychology shaped by peoples’ sense of group positions. Drawing on the social identity approach in social psychology (Reicher et al. 2010), this article proposes a group-level psychological conceptualisation of caste prejudice and examines its relevance for understanding contemporary expressions of casteism. Using a cross-sectional correlational survey design and a purposive sample comprising different caste categories (N=278), we examined associations between socio-demographic factors, personality and individual difference factors, caste prejudice, subjective identification with caste, opposition to reservations, and endorsement of discriminatory practices. The data was analysed using Pearson Product-Moment Correlation, ANOVA, and Multiple Linear Regression. We found that members of historically advantaged caste groups are more likely to endorse caste prejudice. Caste prejudice, in turn, significantly predicted opposition to reservations and endorsement of discriminatory practices. Importantly, those seeking to glorify their caste identity were found to be more likely to endorse caste prejudice. The psychological attachment to caste identity was not found to be associated with caste prejudice. All results were found to be significant even after statistically controlling for socio-demographic and personality-individual difference factors, suggesting the unique contribution of social identity-based analysis. We discuss the implications of our findings for theory, research, and efforts for social change.