The purpose of this study was to understand how American students perceived and interacted with Arabs at a Midwestern university. Social capital theory was the theoretical framework used to understand the nature of interactions between American and Arab students. The data were collected by conducting individual interviews with 15 junior and/or senior American students in the business college. Findings indicated that most participants lacked accurate or in-depth knowledge about who Arabs are as an ethnic and cultural people. Participants held many misconceptions about Arabs and their culture. To support the social capital of students and to reinforce the bridging efforts between American and Arab students, the study provided implications for American universities, classroom instructors, and Arab students studying in the U.S.