This essay examines racism in Australia, focusing on its historical and contemporary manifestations, particularly concerning Aboriginal and Torres Strait Islander peoples. It explores structural and interpersonal racism, highlighting the impact on health, employment, and social experiences, using a case study of an Indigenous woman facing discrimination at a restaurant. The essay discusses the role of societal attitudes, media portrayals, and legal reforms in perpetuating or combating racism. It concludes that prejudiced mentalities and institutional practices contribute to discrimination, causing stress and health issues for Indigenous Australians. The essay references various studies and reports to support its arguments, emphasizing the need for proactive legal reforms to address the systemic issues of racism within Australian society.