ObjectivesCharacterization of psychotherapy as the “talking cure” de‐emphasizes the importance of an active listener on the curative effect of talking. We test whether the working alliance and its benefits emerge from expression of voice, per se, or whether active listening is needed. We examine the role of listening in a social identity model of working alliance.MethodsUniversity student participants in a laboratory experiment spoke about stress management to another person (a confederate student) who either did or did not engage in active listening. Participants reported their perceptions of alliance, key social‐psychological variables, and well‐being.ResultsActive listening led to significantly higher ratings of alliance, procedural justice, social identification, and identity leadership, compared to no active listening. Active listening also led to greater positive affect and satisfaction. Ultimately, an explanatory path model was supported in which active listening predicted working alliance through social identification, identity leadership, and procedural justice.ConclusionsListening quality enhances alliance and well‐being in a manner consistent with a social identity model of working alliance, and is a strategy for facilitating alliance in therapy.