Given top-down effects on perception, we examined the effect of group identity on time perception. We investigated whether the duration of an ambiguous sound clip is processed differently as a function of group congruent or incongruent source attribution. Group congruent (in-group) and incongruent (out-group) context was created by attributing the source of an identical ambiguous sound clip to Hindu or Muslim festivals. Participants from both the religious groups (Hindus and Muslims) prospectively listened to a 20 s long ambiguous sound clip and reproduced its duration (experiment 1a). Both groups reproduced significantly longer durations when the sound clip was associated with the group congruent compared to the group incongruent festival contexts. The two groups did not differ significantly in reproduced duration when the sound attributed to a non-religious common (busy city street) context (experiment 1b). With multiple durations (1, 5, 10 and 20 s), longer durations were reproduced for group congruent labelling at objectively longer durations (experiment 2). According to the internal clock model of time perception, the significant slope effect indicated that the group congruent context influences temporal experience through changes in pacemaker frequency. We argue that the duration appearing relevant to one's own group is processed differently possibly owing to differences in attentional deployment, which influences the pacemaker frequency. © 2020 The Authors.