Drawing upon imprinting and categorical social cognition perspectives, we theorize how CEOs’ early-life exposure to intergroup ethnic violence shapes their firms’ FDI strategy in countries wherein outgroup members form the preponderant demography. Our analyses of Indian firms’ FDI reveal that Hindu CEOs’ early-life exposure to Hindu-Muslim ethnic violence reduces their firms’ likelihood of a) FDI in Muslim-majority countries and b) engaging in partnering-mode in these countries. Further, imprinted CEOs’ working experience with Muslim directors through board interlocks weakens the negative effect on likelihood of FDI, but not on partnering modes in Muslim-majority countries. We contribute to a better understanding of the heterogeneous nature of imprinting decay, sources and consequences of executives’ stereotyped beliefs regarding demographic groups, and subjective nature of FDI location choices.