In approximately 30 years, up to one in five Americans will be mixed race. How monoracial people perceive multiracials will become a critical aspect of race relations in the United States. This demographic shift highlights the need to broaden social psychological theories and investigations to understand multiracial person perception. This article reviews existing research on how people perceive, and remember mixed‐race people, with attention to how these findings contribute to our understanding of racial categorization, impression formation, and intergroup relations. People categorize multiracial people according to the principles of hypodescent (Black + White = Black), the minority bias (Black + White = not White), and by adopting a novel category (Black + White = Multiracial). The particular categorization of a multiracial target depends on several factors, including availability of target information (ancestry, facial appearance), the accessibility of different racial categories, perceiver motives, and the broader cultural context. Downstream implications of these categorization processes are discussed, and future directions are highlighted. Researchers are encouraged to think about race as a multifaceted concept that includes many components (appearance, identity, ancestry, and perceived) that are not necessarily one‐to‐one, especially for mixed‐race individuals.