Two studies involving people with body piercings tested the hypothesis that perceived discrimination increases group identification. In Study 1, group identification mediated the positive relationship between perceived discrimination and attempts to differentiate the ingroup from the mainstream. In Study 2, perceived discrimination against people with body piercings was manipulated and was found to increase group identification. Support was found for the prediction that group identification mediates the relation-ship between perceptions of discrimination and collective self-esteem. Results demonstrate the importance of group identification for both the meaning of group membership and its consequences for well-being among members of disadvantaged groups.