Interethnic bullying that targets ethnic minority students has serious consequences for the lives of victimized students. Teachers' evaluations of the bullying are critical because teacher intervention can stop bullying and improve the adjustment of victimized students. Because the literature has documented partially overlapping biases against people of Arab ethnicity and people with refugee backgrounds, this study investigated whether teachers' attitudes toward refugees play a role in their evaluations of the interethnic bullying of an Arab student. Teachers (n = 373; 77% female) who participated in the study filled the Threats--Benefits Inventory (TBI) that measured two types of attitudes toward refugees (perceiving refugees as a threat and perceiving refugees as a benefit) and evaluated a hypothetical vignette of interethnic bullying targeted at an Arab student. SEM analysis, controlling for gender, age, and contact with refugees, indicated that teachers' attitudes toward refugees were not associated with their perceptions of the interethnic bullying as wrong or with their willingness to intervene. However, viewing refugees as a source of high threat or low benefit was consistently associated with lower recognition of the negative outcomes of the interethnic bullying. Moreover, a greater willingness to intervene positively associated with female gender and increasing age. The study suggests that teachers' attitudes toward refugees may contribute to underestimating negative outcomes of interethnic bullying among students. To foster appropriate evaluations of interethnic bullying, teacher education should aim to promote understanding of different marginalized groups and to reduce biases against people with refugee backgrounds.