The effects of portrayals of ethnic endorsers in advertising are ambiguous. These portrayals strengthen the ethnic identity of ethnic minority groups, thus leading to positive responses toward the ad. They can lead to negative responses, because these portrayals can be perceived as stereotyped. Humor is a tool that can increase positive effects of identity-building and reduce negative effects of stereotyping. In this study, we investigate how humor moderates the effects of ethnic advertising on consumers from ethnic minority and majority groups. We find that humor supports the effects of traditional portrayals for both groups. Moreover, the effect of traditional portrayals combined with humor is strongest for the minority group. These findings provide evidence for the positive effects of humor in ethnic advertising and thus provide new insights to the stereotyping, ethnic advertising, and humor literature. The findings have practical implications for advertising using ethnic endorsers, humor, or targeted at ethnic minority groups.