The neuropeptide hormone oxytocin and the steroid hormone testosterone have received attention as modulators of behavior in the context of intergroup conflict. However, to date, their interactive effect has yet to be tested. Here, in a double-blind placebo-control design, 204 participants (102 female participants) self-administrated oxytocin or placebo and completed an experimental economic game modeling intergroup conflict. Salivary testosterone (n = 192) was measured throughout the task to assess endogenous reactivity. As a caveat, even at this sample size, our derived power to detect small effects for 2- and 3-way interactions was relatively low. For male participants, changes in testosterone predicted willingness to sacrifice investments for the betterment of the group. Intranasal administration of oxytocin strongly diminished this effect. In female participants, we found no credible evidence for association between changes in testosterone and investments, rather, oxytocin effects were independent of testosterone. This 3-way interaction was of medium to large effect size (Odds Ratio 5.11). Behavior was also affected by social cues such as signaling of ingroup and outgroup members. Our findings provide insights as to the biological processes underpinning parochial altruism and suggest an additional path for the dual influence of oxytocin and testosterone on human social behavior.