The role of category salience in mediating the effects of intergroup contact was examined. One theoretical model proposes that some psychological salience of subgroup categories is necessary to facilitate the generalization of attitude change beyond the immediate contact situation. Another argues that a re-categorization of the subgroups into a new superordinate category is more beneficial, whilst a third suggests that de-categorizing the situation entirely is optimal. An alternative view, which combines the first two models, proposes a Dual Identity strategy (simultaneous high superordinate and high subgroup categorization) as an important mediator of the relationship between contact variables and intergroup attitudes. In the study, participants (N ¼ 114) undertook a cooperative intergroup task under four conditions of category salience: 'subgroup', 'superordinate', 'superordinate and subgroup', and 'no group salience'. Evaluative ratings and symbolic reward allocations both for the groups encountered (contact) and those outside the situation (generalization) provided measures of intergroup bias. Bias within the contact situation was mainly eliminated in all conditions. However, on the more generalized bias measures, only the 'superordinate' and 'superordinate and subgroup' (Dual Identity strategy) conditions maintained this low level; in the other two conditions intergroup bias resurfaced. A combination of the first two models is proposed. Copyright # 2002 John Wiley & Sons, Ltd.It is widely accepted that intergroup contact per se is not sufficient to reduce intergroup bias (Allport, 1954;Brewer & Miller, 1984;Gaertner, Mann, Murrell, & Dovidio, 1989;Hewstone & Brown, 1986 A recent meta-analysis by Pettigrew and Tropp (2000) has found a reliable inverse correlation between intergroup contact and prejudice. However, this relationship was significantly moderated by several factors such as the type of people involved in the situation, the accuracy of the contact measures and the type of interactive setting where the contact takes place.