The authors show a new outgroup homogeneity bias—outgroup covariation. They investigated perceived covariation among the features describing group subtypes. Results support a familiarity covariation effect. Those more familiar with a group perceive lower covariation among features of group members. Results also support an outgroup covariation effect. In cases in which people are less familiar with the outgroup, they perceive greater covariation among features of outgroup members. For age, in which young and old people were less familiar with the outgroup, both perceived greater covariation among features of outgroup subtypes. For occupation, in which undergraduates had less work experience than masters of business students, undergraduates perceived greater covariation among features of business subtypes. For gender, in which students were equally familiar with men and women, no covariation effect occurred. Familiarity mediated outgroup covariation effects.(PsycINFO Database Record (c) 2016 APA, all rights reserved)