Immigrants' national and ethnic identifications have been assumed to contradict each other. However, while studies in psychology generally support this association, under the condition in which national identifications are conceptualized as inclusive, ethnic identifications do not necessarily contradict national identifications. I hypothesize that in a country where tolerant multicultural policies are introduced, immigrants' ethnic and national identifications may be compatible. To test this hypothesis, data collected from respondents with an immigrant background in the European Social Survey 2014 were analysed with multilevel modelling. The results support the hypothesis: in a country with tolerant multicultural policies, ethnic and national identifications are positively associated, while in a country with strict policies, the identifications are negatively associated. This study indicates that the association between ethnic and national identifications is not always negative, but this is dependent on context.