This literature review explores the impact of racism on mental health in the workplace, with a focus on immigrants in Australia. The review analyzes various literary articles, highlighting how racial discrimination increases psychological demands, reduces self-esteem, and elevates depression levels, ultimately hindering organizational productivity. Studies indicate that subtle forms of discrimination, such as micro-aggressions, significantly affect mental health, leading to depressive symptoms and increased employee turnover, especially among ethnic minorities. The review also reveals that racial discrimination in workplace settings causes higher psychological distress compared to other public places. Furthermore, the economic burden of racial discrimination in Australia is substantial, primarily affecting Aboriginals and immigrants, leading to increased anxiety, depression, and PTSD. The review identifies a gap in research concerning the specific impact of racial discrimination on immigrants in Australian hospital settings, suggesting a direction for future research.