Research indicates that racial categorization is slowed by the presence of category-inconsistent information. The current experiments tested response conflict, or the tendency for opposing response tendencies to compete for activation, as a mechanism for this effect. In two experiments, participants more quickly categorized faces flanked by racial stereotype-congruent words than faces flanked by stereotype-incongruent words, particularly when stereotype-congruent words were more probable. Event-related potential (ERP) data indicated that this behavioral effect was due to response conflict. The lateralized readiness potential (LRP) showed that, relative to stereotype-congruent flankers, stereotype-incongruent flankers initially elicited activation of the incorrect categorization response, which slowed activation and execution of the correct categorization response. Stereotype-incongruent flankers also enhanced the amplitude of the N2 (conflict monitoring) component. Potential differences in stimulus evaluation time, assessed with the latency of the P3 component of the ERP, were not responsible for observed response time differences. Findings are discussed in terms the neural locus of behavioral effects.