At least two theoretical accounts suggest that low self-esteem (i.e., a belief that one is of low value) should predict out-group derogation. Social identity theory proposes that derogating out-groups is one of the ways of achieving positive in-group distinctiveness. Thus, in order to increase their self-esteem, group members may be motivated to derogate out-groups(Tajfel & Turner, 1979; cf Turner & Reynolds, 2001). In addition, Theodore Adorno (1997) and Erich Fromm (1964; 1973) and status politics theorists (e.g., Gusfield, 1973) argued that low self-esteem motivates collective narcissism (or exaggeration of the in-group’s importance), which is associated with out-group derogation. However, empirical evidence suggests that, on average, the relationship between self-esteem and out-group derogation (Abrams & Hogg, 1988; Martiny & Rubin, 2016; Rubin & Hewstone, 1998) as well as the relationship between self-esteem and collective narcissism are close to zero (Golec de Zavala et al., 2019). Results of six studies (cross-sectional, longitudinal and experimental) are discussed that indicate that low self-esteem uniquely predicts out-group derogation via collective narcissism only when the overlap between collective narcissism and in-group satisfaction is statistically controlled. High self-esteem is associated with out-group tolerance uniquely via in-group satisfaction.