Over the last few years there has been an increase in anti-trans rhetoric and violence towards transgender individuals, the consequences of which continue to adversely affect transgender people’s lives. Given these societal ramifications, it is crucial to explore how transprejudice (prejudice against transgender people) might be ameliorated. Research within social psychology has repeatedly shown intergroup contact to reduce various forms of outgroup prejudice, but little extant research has tested this association for prejudice related to transgender identity. We conducted three cross-sectional studies which tested the relation between contact (quantity and quality) with transgender people, trans-related knowledge (i.e., participants’ self-reported level of knowledge about experiences of transgender people), and transprejudice (cognitive and affective). Across the three studies, we found that contact quantity and contact quality significantly mediated the negative relationship between knowledge and transprejudice (although contact quality was a more consistent mediator). Those with more trans-related knowledge had more frequent and better-quality contact with trans people, and in turn showed less prejudice towards transgender people. We found less consistent support for an alternative mediation model with prior knowledge mediating the contact to transprejudice link. These findings demonstrate the importance of the role of both knowledge about and contact with transgender people as a means of transprejudice reduction, with wide-reaching implications for creating environments that are diverse, equitable, and inclusive.