Research investigating etiology, or beliefs and values related to prejudice toward transgender individuals, is in the early stages. This study examined correlates and predictors of anti-transgender prejudice from a sample of 298 undergraduates at a large, urban university in the Southeastern United States. Measures of traditional values and beliefs, such as right-wing authoritarianism, and social dominance orientation, as well as social identity factors, such as intergroup contact, intergroup anxiety, in-group identity, and contact apprehension toward transgender individuals were examined. Bivariate correlations revealed that right-wing authoritarianism, contact apprehension, and intergroup anxiety were strongly correlated with anti-transgender prejudice, using the Genderism Transphobia Scale Revised version (GTS-R; Tebbe & Moradi, 2014). Contact with gay men and lesbians yielded a moderate negative correlation with GTS-R. Contact with transgender individuals yielded a small, but significant negative correlation with GTS-R. Hierarchical regression analysis revealed that contact apprehension, right-wing authoritarianism, and contact with gay men and lesbians were significant predictors of GTS-R. A post hoc mediation analysis revealed that contact apprehension significantly mediated the relationship between gender and anti-transgender prejudice.