The authors argue that persons derive in-group expectancies from self-knowledge. This implies that perceivers process information about novel in-groups on the basis of the self-congruency of this information and not simply its valence. In Experiment 1, participants recalled more negative self-discrepant behaviors about an in-group than about an out-group. Experiment 2 replicated this effect under low cognitive load but not under high load. Experiment 3 replicated the effect using an idiographic procedure. These findings suggest that perceivers engage in elaborative inconsistency processing when they encounter negative self-discrepant information about an in-group but not when they encounter negative self-congruent information. Participants were also more likely to attribute self-congruent information to the in-group than to the out-group, regardless of information valence. Implications for models of social memory and self-categorization theory are discussed.