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We argue that multi-ethnic affiliation as a member of both the Pacific and majority (European) group creates tension in psychological wellbeing for Pacific peoples of mixed ancestry. Study 1 showed that multi-ethnic Pacific/non-Pacific people were lower in Pacific Familial Wellbeing relative to mono-ethnic Pacific and multi-ethnic Pacific/Pacific people (n = 586). Study 2 replicated this effect in a New Zealand (NZ) national probability sample using a measure of self-esteem (n = 276). Study 2 also modelled the mechanism driving the identity tension effect, and showed that group differences in negative affect toward Pacific peoples fully mediated the effect of ethnic mixed or mono-ethnic group affiliation on self-esteem. This currently affects the one-third of Pacific people who identify as Pacific/non-Pacific in NZ and occurs because multi-ethnic identification promotes the endorsement of negative societal attitudes …