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In this paper, we apply Omi and Winant's theory of racial formation to understand how a new racial category of “Latino” is being created within Atlanta, a city firmly entrenched in a Black/White binary of race. Comparing Dominicans and Guatemalans in the Atlanta metro area, we show how two processes are “racializing” Latinos: 1) the homogenization of Latinos into a single “race” through state laws and policies and 2) the diversified understandings of and responses to race and racial categorization among Latinos based on their national origin and ethnicity and the specific Atlanta context. We argue that in moving beyond the Black/White binary, state laws that racialize Latinos create a two-dimensional category, with a homogenized “Latino” category as one axis and an illegal/legal distinction as the second axis. The meanings attached to “race” and the consequences that Latinos experience from racialization …