This paper focuses on the problems of discrimination and disadvantagement faced by Asian and Pacific Americans. It is argued that discrimination and institutional racism have a negative effect on the mental health of this minority group. Recommendations made by a subpanel to the President's Commission on Mental Health to deal with these problems are outlined. They include: (1) provisions in mental health policies to acknowledge the unique cultures, languages, and lifestyles of Asian and Pacific Americans; (2) the enactment of an income maintenance program; (3) repeal of discriminatory legislation; (4) equity for immigrants and refugees coming to the United States; (5) recognition of the rights of Asian and Pacific American patients in health and mental health settings; (6) the enactment of a bill to establish a Division for Minority Group Mental Health Council and other advisory bodies; and (8) the allocation of funds for the development and support of bilingual and bicultural rehabilitation programs for Asian and Pacific Americans with developmental needs. (Author/EB)