The present study explored the relationships between individual ethnicity and community ethnicity factors and the prevalence of racial bullying. It was hypothesized that individuals belonging to the majority ethnic group in a community were less racially victimized than in a community in which they were minority members. Data were collected from 20,021 students in Grades 6 to 10 as part of the 2009/2010 Health Behaviour in School‐aged Children Survey, from Geographical Information Systems data, and from census data. Community diversity was associated with prevalence of racial victimization, although relationships differed by type of religious organization. Those of East/Southeast Asian, Caucasian, and South Asian ethnicity were more likely to be racially victimized in communities in which they were the minority ethnic group than when they were in the majority group. The importance of considering ethnicity characteristics that are related to racially focused bullying in the community context is discussed.