This chapter provides a current comprehensive understanding of racial discrimination in organizations. It begins by reviewing relevant theory that explains why racial discrimination occurs and how it is manifested through prejudice, stereotyping, and aversive racism. This includes macro (e.g., sociological) and micro (e.g., social psychological) perspectives that have helped guide the existent and continuing research on the topic. This discussion is followed by a review of research on the various targets of racial discrimination (i.e., Blacks, Asians, American Indians, Native Hawaiians, Whites, and Hispanics). Subsequently, the chapter considers types of racial discrimination by comparing overt, traditional forms of racial discrimination (i.e., formal) with covert, current forms (i.e., interpersonal).