Organizations often state that they value diversity. The workforce, however, is often quite homogeneous, reflecting a striking mismatch between aspirations and reality.Based on the distinction between desirability and feasibility concerns, we provide a psychological argument for this mismatch. We hypothesize that social distance influences individuals' choices regarding diversity. When being socially more distant, individuals prefer to assemble a diverse team, due to a stronger impact of pro-diversity desirability concerns. In contrast, when being socially close, individuals prefer similar team members, due to a stronger weighing of anti-diversity feasibility concerns. Four studies investigate the different decision outcomes when being socially distant compared to close. Study 1 shows that working in a diverse group is perceived as desirable, but less feasible. Study 2 investigates the impact of psychological distance on individuals' choices of working with a more different (when being socially distant) or similar partner (when being socially close). Study 3 shows that participants created a more diverse team for another person (distance condition) than for themselves (proximity condition). In Study 4, participants did not create a more diverse group for a stranger (distance condition) than for a friend (adjusted proximity condition), however, participants weighted feasibility concerns less strongly for strangers than for friends.Implications for diversity research and practice are discussed.