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We offer a theory of polarization as an optimal response to ambiguity. Supposeindividual A's beliefs first-order stochastically dominate individual B's. They observe acommon signal. They exhibit polarization if A's posterior dominates her prior and B'sprior dominates her posterior. Given agreement on conditional signal likelihoods, weshow that polarization is impossible under Bayesian updating or after observing extremesignals. However, we also show that polarization can arise after intermediate signals asambiguity averse individuals implement their optimal prediction strategies. We explorewhen this polarization will occur and the logic underlying it.