Previous research has shown that disadvantaged group members cope with the negative effects of perceived discrimination (PD) on mental health using various mechanisms. We examined the potential protective role of two processesin-group identification and intergroup contacton the association between PD and mental health (anxiety and depression) among physically disabled adults (N=269, M-age=39.13, SD=13.80). Intergroup contact, but not in-group identification, had a buffering role on the association between PD and both depression and anxiety. However, this effect was further moderated by in-group identification such that high levels of intergroup contact had a protective role against PD, only when in-group identification was low. Findings highlight the importance of evaluating various social-psychological processes interactively in creating a resilient outlook among disadvantaged groups.