Research on neighbor-stranger discrimination theory has revealed the significance of social context and biological traits affecting the mechanisms that drive social discrimination, such as the dear enemy or nasty neighbor effects (strangers or neighbors more threatening, respectively). Nevertheless, the effects of territory size and human activity on neighbor-stranger experiments have yet to be explored. By examining behavioral responses to spontaneous duets of neighbors and playbacks of strangers’ duets, we tested whether rufous horneros (Furnarius rufus) in smaller territories show heightened aggression, responding more strongly to strangers and less to neighbors than those in larger territories. This could be expected because birds in larger territories might struggle to differentiate competitors due to limited interactions, hindering familiarity with neighbors. Meanwhile, birds in smaller territories are likely to treat neighbors as dear enemies due to the need to minimize territorial costs caused by presumed frequent intrusions or to protect limited resources. Contrary to predictions, rufous horneros responded more strongly to strangers than neighbors, regardless of owner territory sizes. This suggests that the presumed higher intruder frequency in smaller territories does not necessarily lead to adjusted dear enemy relationships. Yet, small territory holders exhibited heightened vocal responses to duets of unfamiliar intruders, indicating a stronger 'dear enemy' effect compared to birds with larger territories. We also tested whether dear enemy relationships would be heightened during weekends. This is linked to the difficulty urban birds might face in distinguishing neighbors from strangers during high human activity days (i.e., on weekdays), due to factors like noise masking intruder acoustic cues and heightened vigilance. Territorial owners exhibited consistent dear enemy behavior towards neighbors, regardless of our proxy for human activity. This underscores their ability in identifying competitor identities within urban settings.