A crucial element of navigating group conflict is how group members manage stigma imposed on them by other groups. Across three experiments, we propose that group identification is a cause and consequence of self-labeling with stigmatizing group labels, a practice known to reduce stigma. Experiment 1 found that group identification increased self-labeling with a stigmatizing group label. In Experiment 2, individuals who self-labeled with a stigmatizing group label felt more identified with their group, which reduced the label's perceived negativity; they also persisted longer on an in-group helping task, an effect that was partially mediated by group identification. In Experiment 3, observers perceived self-labelers as more identified with their group and as viewing the label less negatively; perceived group identification mediated the relationship. Group identification is a critical component in reappropriating stigmatizing labels and provides insight into how highly identified members can navigate group conflict by negotiating their group's identity.