In this article, I argue that the psychological basis of many of the problems associated with immigration can be traced to tangible threats, cultural threats, fears of change, and the negative attitudes and misperceptions that flow from these threats and fears. Concrete suggestions are made for policies at the societal and individual levels that can counteract these problems. In addition, specific programs are suggested to improve relations between residents and immigrants. The article ends with a discussion of some of the psychological processes that underlie improvements in intergroup relations.