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Highly publicized instances of social injustice have raised awareness of inequities and motivated people with advantaged identities to work to end oppression and advocate for members of marginalized groups — in other words, to act as ‘allies’. When successful, engaging in allyship can promote marginalized individuals’ belonging and well-being. However, actions meant to convey allyship can be ineffective or harmful. Thus, it is important to understand how people might act as effective allies — that is, how they might enact allyship efforts that marginalized group members identify as meaningful and that promote psychological benefits for these groups. In this Review, we outline a framework of effective allyship that posits four key and related components: awareness, authentic motivation, action orientation and all-inclusivity. More specifically, taking part in allyship entails acknowledging systemic bias and privileged identities, being motivated by personal values, engaging in high-effort and consistent ally actions, and supporting all members of a marginalized group, including those with multiply marginalized identities. We discuss research supporting the importance of each element, focusing on work with marginalized individuals, and we describe ally interventions. When carefully considered and tailored to relevant marginalized groups, these four components are crucial to acting as an effective ally and fostering welcoming climates.