This article examines the work of facilitators within the garment sector of India to draw insights as to how third parties can help a group build trust and work toward the creation of opportunities for productive dialogue and collaboration in a troubled industry. By analyzing concrete examples from an authentic conflict of perceptual and stereotype change among dialogue participants, this article contributes to the literature on how conflicting stakeholders within a group form, maintain, and transform perceptions and stereotypes of one another. In an attempt to reveal how facilitated dialogue can be used as a tool to produce such stereotype change, it provides a methodological framework for the systematic observation of perceptual change within dialogue processes that can easily be replicated in other dialogue projects.