This paper reviews the evidence for a secondary transfer effect of intergroup contact. Following a contact’s typical primary reduction in prejudice toward the outgroup involved in the contact, this effect involves a further, secondary reduction in prejudice toward noninvolved outgroups. Employing longitudinal German probability samples, we found that significant secondary transfer effects of intergroup contact exist, but they were limited to specific outgroups that are similar to the contacted outgroup in perceived stereotypes, status or stigma. Since the contact-prejudice link is bidirectional, the effect is inflated when prior prejudice reducing contact is not controlled. The strongest evidence derives from experimental research. Both cognitive (dissonance) and affective (evaluative conditioning) explanations for the effect are offered.