Guided by the Needs-Based Model of Reconciliation, we hypothesized that being a member of a victimized group would be associated with a threat to the status and power of one's ingroup, whereas being a member of a perpetrating group would threaten the image of the ingroup as moral and socially acceptable. A social exchange interaction through which victims feel empowered by their perpetrators and perpetrators feel accepted by their victims was thus predicted to enhance the parties' willingness to reconcile. Supporting the predictions across two experiments, members of the perpetrator group (Jews in Study 1 and Germans in Study 2) showed greater willingness to reconcile when they received a message of acceptance, rather than empowerment, from a member of the victimized group. Members of the victimized group (Arabs in Study 1 and Jews in Study 2) demonstrated the opposite effect. Applied and theoretical implications of these results are discussed.