This article examines the issue of racial prejudice in the USA, from both psychological and spiritual perspectives, drawing on psychological and social science literature as well as spiritual principles contained in scriptures from several of the world's religions. It demonstrates that while racial prejudice springs ultimately from a lack of understanding of the spiritual principle of the unity of the human family, it is exacerbated by psychological mechanisms that are demonstrated frequently in human interactions. Through conscientious efforts, individuals can learn to transcend these tendencies and work towards contributing to the establishment of a world civilization.