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A widely researched panacea for reducing intergroup prejudice is the contact hypothesis. However, few longitudinal studies can shed light on the direction of causal processes: from contact to prejudice reduction (contact effects) or from prejudice to contact reduction (prejudice effects). The authors conducted a longitudinal field survey in Germany, Belgium, and England with school students. The sample comprised members of both ethnic minorities (n= 512) and ethnic majorities (n= 1,143). Path analyses yielded both lagged contact effects and prejudice effects: Contact reduced prejudice, but prejudice also reduced contact. Furthermore, contact effects were negligible for minority members. These effects were obtained for 2 indicators of prejudice: negative intergroup emotions and desire for social distance. For both majority and minority members, contact effects on negative emotions were stronger when outgroup …