For members of stigmatized groups, being confronted with high status outgroup members threatens social identity and undermines performance on status-relevant dimensions. Two experiments examined whether the negative effects of outgroup contexts are alleviated when value is expressed for a dimension on which the stigmatized ingroup excels. Specifically, the authors assessed whether ingroup versus outgroup context and contextual value for ingroup dimensions affects group members',reactions to failure on status-relevant dimensions and subsequent performance. Experiment I showed that in comparison to ingroup contexts, outgroup contexts induce stigmatized group members to protect social identity and to feel more agitated following negative performance feedback. Experiment 2 showed that when others in the context emphasize the importance of a dimension on which the ingroup excels, the negative effects of outgroup contexts are alleviated, stigmatized group members feel more cheerful concerning an upcoming task, and task performance is characterized by a focus on success.