Introduction to the Problem: This study examines stereotypes toward the Madurese ethnic group among inbound students participating in the Pertukaran Mahasiswa Merdeka (PMM) Batch 2 program at Universitas Hasanuddin. Stereotypes are often shaped by indirect information and prejudice, potentially hindering effective intercultural communication. Purpose: This study aims to identify the stereotypes attached to the Madurese community and examine whether these perceptions changed after direct intercultural interaction during the PMM program. Design/methods/approach: A descriptive qualitative approach was employed, with data collected through online interviews involving PMM students from various regions in Indonesia who frequently interacted with Madurese students during the four-month exchange program. The data were analyzed using the interactive model of Miles, Huberman, and Saldana (2014). Findings: The findings revealed three dominant stereotypes associated with the Madurese community: having a tough character, being associated with Madura satay sellers, and the tradition of carok. However, prolonged intercultural interaction during the PMM program significantly transformed participants’ perceptions. Most informants developed more positive views and perceived the Madurese community as friendly, tolerant, humorous, and socially supportive. Research limitations: This study is limited to participants from a single PMM cohort at one host university; therefore, the findings cannot be generalized to all PMM participants or broader intercultural contexts. Future research is encouraged to involve participants from different universities and cultural backgrounds to obtain more comprehensive insights. Originality/value: This study contributes to the literature on intercultural communication by demonstrating how direct interaction through the PMM program can reduce ethnic stereotypes and reshape perceptions toward the Madurese community, thereby providing empirical evidence of the role of intercultural exchange in fostering mutual understanding.