This study expands research on how intergroup contact makes ethnic minority members less prejudiced toward the majority group. Specifically, we propose that perceived group discrimination may serve as an essential boundary condition of the friendship‒prejudice relationship. Accordingly, analyses show that: (a) cross-group friendship predicts less prejudice, (b) perceived group discrimination relates to greater prejudice only among noncontacted ethnic minority members, and (c) greater perceived group discrimination enhances the ability of cross-group friendship to predict reduced prejudice toward majority members. The enhancing effect is inconsistent with previous research. Moreover, we show that perceived personal discrimination does not moderate the friendship‒prejudice relationship. Finally, analyses confirm the unique qualities of cross-group friendship, as perceived group discrimination does not predict greater prejudice when this type of contact is most intense. Analyses are performed on an unusually rich, national probability sample of ethnic minority members fielded in 2017 including 1211 respondents from Denmark. We conclude with discussion of the implications of our findings.