Allport's Contact Theory suggests that under certain conditions, direct contact between members of different social groups can reduce prejudice and improve intergroup relations. The theory emphasizes that contact should occur in a cooperative environment where both groups have equal status, share common goals, and receive institutional support. The theory identifies four key conditions for effective contact: equal status between groups, common goals, cooperation, and support from authorities. When these conditions are met, individuals are more likely to develop positive attitudes toward each other, leading to a decrease in stereotypes and discrimination.