The effects of migration have been widely studied, yet most research focuses on immigrant integration rather than the host society's expectations. Understanding how migration impacts the host ingroup, particularly university students, is crucial for developing effective social welfare policies. This study, using a social identity perspective, examined how xenophobia indirectly affects life satisfaction through future anxiety. Data from 608 university students revealed that while xenophobia does not directly impact life satisfaction, it decreases life satisfaction by increasing future anxiety, which, in turn, negatively affects well-being. These findings highlight the importance of addressing xenophobia to reduce future anxiety and enhance students' life satisfaction. University students, as future leaders, play a pivotal role in fostering inclusive and cohesive societies. Collaborative efforts between researchers and policymakers are essential to better understand these dynamics and develop targeted interventions that promote psychological well-being and social harmony among young adults in educational settings.