We explore the idea that humor focused on social group disparities can be a viable tool to reduce some of the negative outcomes associated with interracial interactions. These interactions are crucial in promoting common understanding about the causes of social, educational, and economic disparities and crafting solutions to redress them. However, investigations have demonstrated that interracial interactions can be emotionally and cognitively taxing, and for these reasons are often avoided. When not avoided, these interactions often result in negative outcomes. Anxiety has been identified as a key factor in these outcomes as majority group members cope with concerns over appearing biased and minority group members cope with concerns over being discriminated against. Humor may be able to alleviate anxiety that contributes to negative outcomes associated with intergroup dialogue. To explore this claim, we first review the literature on interracial interactions and the role of anxiety in shaping them. We then discuss investigations exploring the impact of group-related humor, specifically disparagement humor, on intergroup perceptions. Finally, we draw from both literatures to consider factors that might determine race-related humor’s potential to facilitate positive interracial dialogue through anxiety reduction. We conclude with some possible areas for further research.