Our results indicate that two thirds of active-duty military personnel report experiencing offensive racial behaviors in the previous 12 months, whereas approximately one in ten reports threatening racial incidents or career-related discrimination. Racial harassment significantly increases job dissatisfaction irrespective of the form of harassment considered. Furthermore, threatening racial incidents and career-related discrimination heighten intentions to leave the military. Finally, our results point to the importance of accounting for unobserved individual- and job-specific heterogeneity when assessing the consequences of racial harassment. In single-equation models, the estimated effects of racial harassment on both job dissatisfaction and intentions to leave the military are understated.