This article provides insight into the process of stereotyping from two different perspectives: the perceiver and the target. From the perceiver's perspective, motivational and cognitive reasons for relying on stereotypes for judgment are discussed. From the targets’ perspective, stereotype threat research is reviewed. From both perspectives, it is clear that stereotypes represent a dual-edged sword for both perceiver and target group members. Finally, research incorporating both perspectives provides useful interventions for prejudice reduction.