This study examines the prejudice against the Muslim immigrants in Western countries. The literature explains anti-Muslim prejudice almost exclusively by individual-level factors. Alternately, this study conducts a comparative, multilevel analysis to include cross-level processes as well. The analysis covers 16 Western European countries, and the data come primarily from the fourth wave of the European Values Study in 2008. Results offer strong support for the relevance of the country-level factors to individual prejudice, while confirming the findings of the major individual-level perspectives. More specifically, the findings suggest that the individuals who live in countries with (1) an official religion or (2) a liberal citizenship regime are more likely to be tolerant toward Muslims. The study also offers some support for the contact hypothesis.