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Abstract The rise of nationalist and populist candidates worldwide provides compelling evidence that parties win elections, not by appealing to voters’ policy preferences alone, but rather by connecting those preferences to group identities. This state-of-the-field article argues that party scholars need to integrate constructivist insights from neighboring fields to better understand the role of group identities in party competition. We review recent demand- and supply-side studies on the role of group identities in elections and bring them into conversation with the literature on ethnic politics and nationalism and political economic models of identity politics. On this basis, we suggest a research agenda that models voters as having both policy preferences and desires for self-esteem and self-consistency, which are mediated by their identification with social groups. Voters want to benefit others they see as being similar to themselves, to raise the status of the groups they identify with, and to maintain self-consistency by narrowing the gap between themselves and members of groups with which they identify. Political parties strategically combine policy offers with group appeals to address – and shape – all these motivations. Shifting from a ‘policy-only’ towards a ‘policy-cum-identity’ paradigm will enable the field of party politics to better understand the dynamics of real-world electoral competition and to reconcile its models with the latest developments in the political theory of representation.