This commentary addresses how studies examining the neurophysiological correlates of racial categorization can provide insight into the neurocognitive mechanisms of the other‐race effect in recognition memory. Several articles in the special issue describe how event‐related potentials (ERPs) have been used to examine processing of faces that vary according to race, some of which have concluded that larger ERP amplitudes elicited by other‐race (relative to own‐race) faces indicates less efficient visual processing of other‐race faces. I describe findings from ERP studies of race categorization that suggest an alternative interpretation–that other‐race faces elicit stronger categorization, which impedes individuation of other‐race faces. Suggestions for future research are offered.