The rapid increase in racial/ethnic minority populations in the United States implicates the necessity of implementing new approaches to the training of psychologists. The author proposes that the integration of racial and cultural diversity related issues in clinical supervision is an essential component of clinical and teaching competence, which has important implications for the provision of services to ethnic minorities and, more broadly, to better addressing the full realm of clients' intrapsychic and interpersonal worlds. Psychodynamic aspects of the supervisory encounter, such as the narcissistic struggles of the supervisor and supervisee and racial and cultural elements in transference, contribute to supervisory interactions around race and culture. Clinical illustrations are discussed to elaborate these dynamic processes. Recommendations for supervisors on how to explore race and culture in a safe supervisory space are presented.