--- - |2 Research on residential diversification has mainly focused on its negative impacts upon community cohesion and positive effects on intergroup relations. However, these analyses ignore how neighborhood identity can shape the consequences of diversification among residents. Elsewhere, research using the Applied Social Identity Approach (ASIA) has demonstrated the potential for neighborhood identity to provide social and psychological resources to cope with challenges. The current article proposes a novel model whereby these “Social Cure” processes can enable residents to cope with the specific challenges of diversification. We present two studies in support of this model, each from the increasingly religiously desegregated society of postconflict Northern Ireland. Analysis of the 2012 “Northern Ireland Life and Times” survey shows that across Northern Ireland, neighborhood identity impacts positively upon both well‐being and intergroup attitudes via a reduction in intergroup anxiety. A second custom‐designed survey of residents in a newly mixed area of Belfast shows that neighborhood identification predicts increased well‐being, reduced intergroup anxiety, and reduced prejudice independently of group norms and experiences of contact. For political psychologists, our evidence suggests a reformulation of the fundamental question of “what effects do residential mixing have on neighborhoods?” to “how can neighborhood communities support residents to collectively cope with contact?” - Political Psychology, EarlyView.