Two studies examined the cognitive costs of blatant and subtle racial bias during interracial interactions. In Study 1, Black participants engaged in a 10-minute, face-to-face interaction with a White confederate who expressed attitudes and behaviors consistent with blatant, subtle, or no racial bias. Consistent with contemporary theories of modern racism, interacting with a subtly biased, compared with a blatantly biased, White partner impaired the cognitive functioning of Blacks. Study 2 revealed that Latino participants suffered similar cognitive impairments when exposed to a White partner who displayed subtle, compared with blatant, racial bias. The theoretical and practical implications for understanding the dynamics of interracial interactions in the context of contemporary bias are discussed.