In 1988, Jock Collins boldly suggested that Australia's earlier migrant arrivals, the subject of prejudice themselves, often become the perpetrators of prejudice. Indeed, as we collect oral histories from post-war migrants, we are regularly confronted with angry statements such as asylum seekers are just let in and given everything. What lies at the heart of this phenomenon? Clearly, prejudice and stereotyping exists in all societies but seems to be particularly evident in societies where an ongoing flow of migrants continues to change and alter the ethnic and racial mix. This article reflects upon research conducted in the Hostel Stories project, where we frequently were confronted with stereotyped, prejudicial, and even racist comments about other migrants and refugees during interviews with migrants. These statements made us ask whether Collins was correct in his observations. Drawing on the literature from various disciplines, we consider various influences on migrant attitudes towards other migrants. We propose that it is critical to continue to progress beyond the conventional topics explored in migration studies and ask difficult questions in order to contribute to a growing global discussion on ethnicity and intergroup relations, especially in relation to prejudice and racism.