We examined how people construct their social identities from multiple group memberships—and whether intergroup contact can reduce prejudice by fostering more inclusive social identities. South Indian participants ( N = 351) from diverse caste backgrounds viewed 24 identity cards, each representing a person with whom participants shared none, one, two, or all of three group memberships (caste, religion, nationality). Participants judged each person as “us” or “not us,” showing whom they included in their ingroup, and whom they excluded. Participants tended to exclude caste and religious minorities, replicating persistent social divides. Bridging these divides, cross-group friendship was associated with more inclusive identities which, in turn, were associated with more positive relations between an advantaged, an intermediate, and a disadvantaged caste group. Negative contact was associated with less inclusive identities. Contact and identity processes, however, did not affect entrenched opposition to (or undermine support for) affirmative action in advantaged and disadvantaged groups.