Two experiments investigated the way in which the presence of a comparative or inter-group context during stereotype formation affects stereotype change, induced by subsequent disconfirming information. Participants learned about a focal group, after learning about one of the two context groups. After reporting their stereotypes about both groups, participants learned additional information about the focal group. This information described new group members who either confirmed or disconfirmed the group stereotype. Consistent with previous research, participants formed more extreme stereotypes about the focal group on dimensions that distinguished it from the context group (i.e., a contrast effect). In response to the subsequently presented disconfirming group members, a greater stereotype change was observed on dimensions that distinguished the focal group from the context group than on dimensions it did not. We argue that these effects are due to differences in perceived typicality of disconfirming group members. © 2002 Elsevier Science (USA). All rights reserved.