Social networks provide the architecture to facilitate important socio-emotional and task related exchanges within groups. However, researchers have just begun to explore how relationships form in groups comprised of individuals who differ on one or more dimensions. This paper investigates the role of social categorization and social network theories on the formation of social networks within diverse groups. We suggest that each perspective offers an alternative, but incomplete, understanding of how relationships may arise in diverse groups. Specifically, we integrate these two perspectives to provide a more complete understanding of how different types of diversity impact tie formation and allow individuals in diverse groups to achieve their socio-emotional and task-related objectives.