Community involvement in archaeological digs aims to reconnect people with the history and heritage of where they live. This paper applies social psychological theories to understand how community archaeological projects create opportunities for place‐based social identity and positive intergroup relations. Focus groups were conducted across five areas of Greater Manchester (UK) with 24 participants who volunteered for Dig Greater Manchester, a community archaeology initiative. The focus groups aimed to understand how experiences of participating in digs and exploring local heritage modified, strengthened or initiated identification with place and community, thus moving from individual levels to social levels of identity. The findings offer insight as to the ways in which people make sense of their own—and others'—place‐based social identities as a result of participating in community archaeological digs. Copyright © 2017 John Wiley & Sons, Ltd.