The present study aimed to draw on 2 theoretical models to examine the relationship between perceived ethnic discrimination and psychological distress in a sample of ethnic minority young people (N=154). Analysis provided no support for the hypothesis derived from the self-esteem theory of depression that self-esteem (personal and ethnic) moderates the discrimination-distress relationship. There was, however, partial support for a mediating role of self-esteem, as predicted by the transactional model of stress and coping. This mediational relationship was moderated by gender, such that both forms of self-esteem exerted a mediating role among men but not women. The authors consider the implications of their findings for theory and future research examining the consequences of discrimination on psychological well-being.