Does exposure to ethnic minorities change the majority’s attitudes towards them? We investigate this question using novel panel data on attitudes from a general-population sample in the Netherlands matched to geographical data on refugees. We find that people who live in neighborhoods of refugees for a sufficiently long time acquire a more positive attitude. Instead, people living in municipalities hosting refugees, but not in their close neighborhood, develop a more negative attitude. The positive neighborhood effect is particularly strong for groups that are likely to have personal contact with refugees suggesting that contact with minorities can effectively reduce prejudice