This study's purpose was to investigate if misconceptions lead to conflicts and increase attention among scholars for further research as well. Although misconception is one of the roots of conflicts is somehow accepted, especially by the practitioners, there are not many empirical studies conducted to investigate if there is a relationship between misconception and conflicts. This study is prepared on a small scale as a starting point. To explore the subject better case study methodology is used.  Two different studies conducted to be able to compare and analyze the situation among the groups.  One group is taken as in-group and the other group is taken as out-group. This study's findings revealed that misconception leads to conflict at workplaces and to a hostile work environment. "We vs. them" situation among the groups and intergroup conflicts are observed. Conclusion and limitation are discussed.