The 2015 Canadian federal election campaign put into focus relations between Muslim communities in Canada and wider Canadian society, featuring debates around banning the niqab, and a “barbaric cultural practices” hotline. At the same time, challenges in relations between Muslims and majority-group Canadians were not a new development in 2015: they had in the past faced periodic strains due to terrorism-related events, and attacks targeting Muslims in Canada. The Canadian case is in fact reflective of a challenge in intergroup relations facing several Western democracies. In light of this, what accounts for majority-group Canadians’ attitudes toward Muslims in Canada? Drawing on data from the 2011 and 2015 Canadian Election Studies and theories linking outgroup perceptions to intergroup contact (friends), local demographic context at both the micro-level (neighbours) and meso-level (townspeople), and political factors (parties), this article seeks to explain why majority-group Canadians hold alternately positive or negative views of Muslims.