Using a sample of Bosnian adults (N = 381) we investigated the association between intergroup contact, measures of intergroup relations, and mental health. Structural equation models with latent variables showed that postwar contact had beneficial effects, being positively related to outgroup trust and intergroup forgiveness, and negatively associated with social distance. Moreover, postwar contact had indirect effects on reduced morbidity and posttraumatic stress disorder symptoms via increased intergroup forgiveness and reduced social distance. We also analyzed the role of potential inhibitors and facilitators of the beneficial effects of postwar contact, and found that experience of violence played a detrimental role, while prewar contact was related to positive outcomes. Moderation analyses revealed the interactive effects of prewar and postwar contact, as positive effects of present-day contact on intergroup relations (promoting trust and reducing social distance) were strongest when prewar contact was high. Conversely, postwar contact was positively associated with outgroup trust only for respondents with low levels of experience of violence. Findings underline the value of promoting intergroup contact in postconflict settings. [ABSTRACT FROM AUTHOR]