This study integrates research on stereotype threat with I research on applicant perceptions to examine how these two paradigms jointly enhance the understanding of racial subgroup cognitive ability test differences in selection contexts. A simulated selection context was used so that both stereotype threat and face validity could be manipulated. Participants were 250 White and 144 Black students. Using a 3 (stereotype threat: diagnostic, non-diagnostic., control) x 2 (face validity: face valid, generic) x 2 (race: Black, White) between-subjects design, our results found that stereotype threat interacted with face validity and race, but only for individuals highly identified with their racial group. Results suggested that Blacks performed best when taking the generic test in the control condition, whereas when taking the face valid test, they performed best in the non-diagnostic condition. Across all threat and face validity conditions, Black performance was worst in the diagnostic condition. In addition, correlational analyses found important individual differences in perceptions of stereotype threat, such that these perceptions contributed to lower face validity, lower test-taking motivation, and higher anxiety. Further, motivation positively and anxiety negatively influenced actual test performance. Thus, this study finds that research on stereotype threat and applicant perceptions are complementary, and together contribute to a better understanding of subgroup differences on cognitive ability tests.