The present studies examined the conditions under which low subjective socioeconomic status (SES) is associated with greater racial/ethnic prejudice among White Americans. Using theories of intergroup threat and inclusive victim consciousness, we predicted that describing racial/ethnic minorities as disadvantaged (vs. as competitive or in neutral terms) would increase empathy and reduce prejudice among White Americans who consider themselves low in SES. Study 1 provided correlational evidence that White Americans who perceived themselves as low‐SES (but not high‐SES) were less prejudiced against racial/ethnic minorities the more they perceived minorities as disadvantaged. In Study 2, portraying the target outgroup (Arab immigrants) as disadvantaged increased outgroup empathy, and in turn reduced prejudice, among participants induced to think of themselves as low‐SES. Study 3 conceptually replicated these results using a different outgroup (Mexican Americans) and a behavioral measure of prejudice. Implications for reducing prejudice among White Americans of different socioeconomic backgrounds are discussed. (PsycInfo Database Record (c) 2021 APA, all rights reserved)