In this paper, I propose a multidimensional model of cultural appropriation, including psychological antecedents of appropriation, policy‐level moderators, and implications for racial oppression. In terms of antecedents, I discuss how colorblind racism, aversive racism, and system justification contribute to two dimensions of cultural appropriation: cultural exploitation (high‐status actors extracting from minoritized communities) and cultural dominance (low‐status actors engaging in dominant cultural practices). Next, I discuss policy‐level moderators to counteract these antecedents to reduce acts of cultural appropriation such as placing importance on the role of education and research, introducing legislation that focuses on minoritized groups’ heritage preservation and human rights, and changing institutional norms and organizational climates. This multidimensional framework proposes practical solutions for policy and practice to mitigate implications of racial oppression, including preventing manifestations of intergroup harm, improving hostile intragroup relations, and reducing appropriated racial oppression and stigma internalization.