We review recent research investigating the effect of shared human values on personal and social outcomes. Using more precise methods than past research, cross-sectional and experimental evidence suggests that well-being and prejudice are predicted by the extent to which people’s values align (or are perceived to align) with those of other people around them. Importantly, this research shows that these effects depend on the type of values being considered and are more nuanced than prior research suggests. For example, well-being is higher among individuals who perceive their fellow citizens to share their values of power and achievement. Prejudice against immigrants is higher among individuals who value conservation more but perceive immigrants to value openness. Moreover, experimentally highlighting actual value similarities rather than mean differences improves attitudes towards outgroups. We discuss how future studies can improve our understanding of value similarity effects and their underlying mechanisms.