While there are many benefits of group diversity, research has indicated that negative effects are also present. Drawing from the social psychology literature, the purpose of this paper is to outline strategies aimed at transforming the negative effects of group diversity: mutual intergroup differentiation, decategorization, and recategorization. Examples for implementing each strategy are provided. An integrated model encompassing all three perspectives is also presented. Finally, conceptual considerations and directions for future research are offered. (Contains 3 figures.)