With a sample of international students, we investigated how perceptions of rejection by the host community are related to a sense of identification with other international students. Based on the rejection-identification model (Branscombe, Schmitt, & Harvey, 1999) we predicted that perceiving prejudice from the host university would be negatively related to psychological well-being. We expected that group identification with international students would mediate a positive effect of perceived discrimination on self-esteem, thus suppressing the negative effect of perceiving prejudice on self-esteem. Consistent with predictions, results supported a model in which identification with international students increased in response to perceiving prejudice and suppressed the costs of perceiving oneself as excluded from the host community. Interestingly, identification with participants' home country was not predicted by perceptions of discrimination. Results are discussed in terms of how minority group members construct group identities in response to the intergroup context. Copyright © 2002 John Wiley & Sons, Ltd.