Communicators tend to share more stereotype-consistent than stereotype-inconsistent information. The authors propose and test a situated functional model of this stereotype consistency bias: Stereotype-consistent and inconsistent information differentially serve 2 central functions of communication-sharing information and regulating relationships; depending on the communication context, information seen to serve these different functions better is more likely communicated. Results showed that stereotype-consistent information is perceived as more socially connective but less informative than inconsistent information, and when the stereotype is perceived to be highly shared in the community, more stereotype-consistent than inconsistent information is communicated due to its greater social connectivity function. These results highlight the need to examine communication as a dynamic and situated social activity. © 2007 American Psychological Association.