People often favor groups they belong to over those beyond the in-group boundary. Yet, in-group favoritism does not always occur, and people will sometimes favor an out-group over the in-group. We delineate theoretically when in-group favoritism (i.e., self-protection) and out-group favoritism (i.e., benevolence) should occur. In two experiments, groups' relative status and competence stereotypes were manipulated; groups' outcomes were non-contingent in Experiment 1 and contingent in Experiment 2. When allocating reward, members of a low-status group were self-protective, favoring the in-group over the out-group under both non-contingent and contingent outcomes. Those with high status benevolently favored the out-group when outcomes were non-contingent, but were self-protective with contingent outcomes. People were willing to engage in social activities with an out-group member regardless of competence. However, when task collaboration had implications for the self, those with low status preferred competent over less competent out-group members. Traits of high status targets were differentiated by those with low status in both experiments, whereas those with high status differentiated low-status members' traits only when outcomes were contingent. A general principle fits the data: The implications of intergroup responses for the self determine benevolence and self-protection.