In this paper, I elaborate on the work done in a previous paper that described a psychological model that allows for a better understanding of the intra-psychic experiences of victims of acts of prejudice. The model, centered around the notion of a psychological boundary, or “skin of the self”, provides a possible developmental trajectory for the formation of two separate but parallel functions of the skin of the self and describes the framework within which these functions determine the impact of prejudicial injuries. In the present work I extend these ideas to address large-group dynamics and integrate them with the pioneering ideas elaborated by Vamik Volkan in this area, while developing a few new concepts that I believe increase the utility of large-group dynamics in understanding the experiences of victims of Islamophobia, as well as shed some light on what might motivate perpetrators of it within the contemporary geopolitical environment, particularly in the United States.