The stress response helps individuals cope with challenges, yet how individual stress levels shape group-level processes and the behaviour of other group members has rarely been explored. In social groups, stress responses can be buffered by others or transmitted to members that have not even experienced the stressor first-hand. Stress transmission, in particular, can have profound consequences for the dynamics of social groups and the fitness of individuals therein. We experimentally induced chronic stress within replicated colonies of zebra finches and used fine-scale tracking to observe the consequences of stress-exposed colony members for the behaviour and reproduction of non-manipulated colony members. Non-manipulated individuals in colonies containing stress-exposed individuals exhibited reduced activity, and fewer—but more differentiated—social bonds. These effects were stronger in colonies with a greater proportion of stress-treated individuals, demonstrating that the impact of stressors can reach beyond directly exposed individuals by also affecting their group mates. We found no evidence that socially transmitted stress affected reproduction or long-term physiological measurement in unmanipulated birds, even though the stress-exposed demonstrators laid slightly fewer eggs and showed stressor-dependent changes in feather corticosterone. Social transmission of these effects, if occurring at all, might be more subtle.