In view of the rise of racist rhetoric in Australian public life in recent
years, this paper reviews psychological research on racism and prejudice as
they are expressed at every level of society from government policy to the
intrapersonal sphere. It draws on evidence arising from social, developmen
tal, clinical, and community psychology. The mental health system is used a
s an exemplar to analyse the operation of institutionalised racism, and som
e observations are made about the past, present, and potential future roles
of psychological research and practice in relation to race and racism. The
paper concludes with a series of recommendations about ways to reduce raci
sm and prejudice at all levels of society.