The purpose of this study was to test the hypothesis that equal-status residential contact between Negroes and whites in a predominantly white middle- to upper-middle-class neighborhood would lead to a reduction of prejudice. The results suggest that equal-status contact in one area (in this case residential) does lead to a reduction of prejudice in that area (Negroes were more accepted as neighbors), but this change does not necessarily generalize to other areas of interpersonal contact. However, when residential contact leads to more intimate types of interactions, a more extensive reduction in prejudice may follow.