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In this research, we examine polarization as a form of rapid social change resulting from the interplay between small group processes and perceptions of society at large. Specifically, we investigate how a negative (or hostile) norm regarding minoritiesy groups at the societal level can fuel polarization between majority subgroups at the local level. By employing a novel analytic approach that uses variances to capture polarization processes, we were able to study non-linear societal change. In three studies among high school and university students (N = 347), we manipulated the societal norm about a minority outgroup category (positive vs. negative). Subsequently, participants read about a minority member’s ambiguous behavior and evaluated this target. All studies used a similar paradigm, but they varied in whether or not the ambiguous behavior was discussed within local groups. Results showed that the societal norm only affected perceptions of the minority member’s behavior when people discussed this behavior in a local group, but not when they reflected on it individually. Specifically, group discussions led to between-group polarization between local groups within a broader social category, but only in the context of a negative societal norm. It appeared that the negative climate of the societal debate increased polarization between local groups, which was influenced by the a priori perception of the local group norm. Results are discussed in terms of the integration of societal level and group level processes when studying the development of intergroup attitudes, and practical implications for the coarsening climate of the debate about current societal issues.