During the past century, American society has made enormous strides in promoting equality and diminishing prejudice among different racial and ethnic groups (Dovidio et al. 2002). Indeed, many believe the election of the first Black president, Barack Obama, marked the beginning of a post-racial America. While progress is undeniable, America is by no means a post-racial country; many groups continue to face significant prejudice and discrimination. Latinos, in particular, experience a great deal of prejudice and discrimination. This discrimination operates in a number of spheres from limited employment opportunities to increasing maltreatment in the criminal justice system. Due to the significant amount of discrimination that Latinos face today, it is essential that policy makers and social scientists begin to communicate with one another about how to address this issue. This article aims to continue the discourse between the worlds of policy and social psychology as it pertains to prejudice toward Latinos. By using recent findings and theories from social psychology, the current article has three major aims: (1) to provide a better understanding of the psychological underpinnings of prejudice toward Latinos; (2) to discuss how current policies may perpetuate prejudice toward Latinos; and (3) to suggest new policies designed to reduce this prejudice.