We hypothesized that the ethnically tolerant (i.e., people who are anti‐ethnocentric and score very low on a measure of ethnocentrism) would perceive people with extremely incompatible values and beliefs as out‐groups and would engage in discrimination, prejudice and political intolerance against them. Experiments among Australian citizens in Studies 1 (N = 224) and 2 (N = 283) showed that the ethnically tolerant perceived supporters of a message in favour of mandatory detention of asylum seekers as out‐groups and consequently exhibited discrimination, prejudice and political intolerance against them. Study 3 with 265 U.S. citizens showed that, controlling for liberalism, ethnic tolerance led to prejudice against out‐groups. This was replicated with 522 UK citizens in Study 4, which also showed that social identity, and not moral conviction, mediated the link between ethnic tolerance and prejudice. The findings suggest that the ethnically tolerant can be discriminatory, prejudiced and politically intolerant against fellow humans.