Anti‐Islamic sentiments have become central to right‐wing populist mobilization in Western societies, which often results in negative portrayals of Muslims in political campaigns. Although these portrayals may have detrimental effects on minority members' identity formation and attitudes toward majority members, little is known about their effects on members of the depicted group. A lab experiment with 145 young Muslims reveals that right‐wing populist ad exposure increases perceived discrimination, which in turn decreases individuals' self‐esteem and national identification, and encourages hostility toward majority members. Religious identification, in contrast, is not affected by ad exposure. Implications of these findings for intergroup relations and democratic processes are discussed.