In recent years American universities have come under increasing attack from many students and a small proportion of faculty for being a spawning ground of ‘institutional racism’, a charge that implies various malefactions. The language of this accusation is often so inflammatory that different meanings of the term are fused and consequently policies to deal with the problems at issue are confused. Having spent a good portion of the last two years listening to the accusations, proclamations, and demands made in the name of institutional racism, we should now like to examine what some of the basic issues seem to be about and their policy implications for the university.