This study is on the relationship between a dominant nominal Lithuanian majority and a Polish minority in regions with either a straight dominance of the majority or with a high proportion of minority members, who outnumber the national majority. Compared to ‘normal’ regions, the latter situation creates an inverted power differential that we expect to have an impact on how the two groups essentialize their own and the other group’s ethnic identity, how they stereotype the out-group and how they cope with the perceived change in power balance by more or less disparaging the others. We analysed the discourse in eight focus group discussions with members of both groups comprising a total of 66 participants. As expected, the nominal minority exhibited a tendency to self-essentialize more than the majority in general. Members of the Lithuanian majority that was locally outnumbered by the minority also self-essentialized but to a lesser degree and additionally used marked arguments of in-group favouritism at the Poles’ expense in their discourse. Members of the unambiguous majority were the most ‘politically correct’ participants by conspicuously favouring a non-generalising and anti-essentialist conversation. The findings are discussed in terms of inter-group relations and implications for politics.