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Research has found that prejudiced people avoid friendships with members of ethnic outgroups. This study shows that this effect is mediated by a social network process. Longitudinal social network analysis of a three-wave panel study of 12-13 year-olds (N = 1,113) found that majority group members with stronger prejudice toward minority groups were less likely to choose friends who had friends from minority groups. Due to the network process triadic closure, adolescents subsequently became friends of their friends’ friends. This led to more ingroup friends for those with prejudice and to more minority group friends for those with positive attitudes. Thus, prejudiced individuals do not have fewer friends from the minority group due to a psychological preference to avoid outgroup members. Rather, they do not have friends in common with outgroup members who could introduce them to each other.