The authors examine overt and subtle forms of stereotyping and prejudice. Two theories that explain overt prejudice are reviewed: realistic conflict theory and social identity theory. Although overt prejudice seems to have declined, subtle stereotyping is still pervasive. The authors review one theory, aversive racism theory, that explains this phenomenon. They also discuss two perspectives, attributional ambiguity and stereotype threat, which provide accounts of the impact of subtle racism. Both overt and subtle prejudice present challenges for the classroom. The authors describe one intervention called the jigsaw classroom that encourages work toward common goals and helps reduce the expression and impact of overt discrimination. A second intervention program, wise schooling, is presented, which aims to reduce the impact of subtle stereotypes by reducing stereotype threat.Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/67510/2/10.1177_000276429604000207.pd