What causes demographic misperceptions of minority populations? We anticipate that the extent to which members of the majority group perceive the minority group as a threat shapes their estimation of minority group size. While existing research argues that demographic misperceptions of minority groups can lead to a sense of threat, we argue that the opposite relationship may exist—that threat also causes demographic misperception. We test our argument using an experiment embedded in a survey of Muslims in Indonesia. We manipulate perceived threat of Christians in Indonesia and then ask respondents to estimate the size of the Christian population. While Muslims generally overestimated the size of the Christian population, we find that Muslims who felt a greater sense of threat estimated the Christian population to be significantly larger at both the national and provincial levels. This finding provides new insights on the directionality of the relationship between the widely acknowledged connection between threat and demographic misperceptions.