Changes in new members' in-group and out-group stereotypes were examined, distinguishing among three stereotype components: stereotypicality, dispersion, and ethnocentrism. Pledges in 4 sororities judged their in-group and out-groups 4 times during their 8-month induction. Overall, out-groups were judged more stereotypically than in-groups at every wave. Although out-groups were initially perceived as more dispersed than in-groups, decreased out-group dispersion resulted in a shift toward out-group homogeneity. Ethnocentrism was present at every wave but decreased because of decreased in-group positivity. The authors discuss implications of these results for existing explanations of stereotype development. It is suggested that other aspects of group socialization (R.L. Moreland & J.M. Levine, 1982) are needed to explain fully the development of intergroup perceptions for new group members.