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“Apology diplomacy” promises to promote international cooperation by assuaging historical grievances held by foreign publics, yet the same apologies are also criticized for igniting backlash among domestic audiences. We develop a theory of how political apologies affect citizen attitudes in both domestic and foreign contexts and test the implications using large-scale survey experiments in Japan and the U.S., which manipulate apology-making in vignettes invoking WWII-related grievances. We find that apology-making — both as statements acknowledging wrongdoing and expressions of remorse — boosts public approval in the recipient country. However, in the apologizing country, apologies can lead to backlash among those with strong in-group identification — manifested as nationalism, social dominance, and ideological conservatism — or who see less value in bilateral relations between apologizer and recipient. This micro-level evidence reveals how leaders face a tradeoff between improving relations abroad and risking domestic backlash, with important implications for the study of diplomatic communication.