The rise of majority-ethnic nationalism – a trend witnessed across the globe – threatens the material and symbolic status of ethnic minorities who do not share the ethnic traits associated with national identity. A common group threat is generally thought to unite threatened groups under a common banner, strengthening identification and enhancing joint efforts to achieve common goals. However, ethnic minorities do not always respond to group threats in concert. On the contrary, a threatening environment sometimes results in fragmentation and intra-group competition. Through behavioural games in Pune, India, this study aims to shed light on the diverging effects of Hindu nationalist threat on intragroup cooperation among Muslim. By randomly assigning a prime that devalues the Muslim identity according to the Hindu nationalist narrative, as well as assign status divisions within groups of Muslim participants, the study highlights the moderating effect of cross-cutting social cleavages on cooperation among threatened minorities