Two studies (N = 1,048) examined how Blacks’, Asians’, and Latinos’ perceived value within their own ethnic group (ethnic intragroup status) shapes mental health (depression, anxiety, psychological distress). The proposed intragroup status and health (ISAH) model predicts that feeling valued among ethnic ingroup members has benefits for health, but also indirect costs. Costs arise because individuals who feel highly valued in their ethnic group see their ethnicity as more central to their self-concept; with stronger identity-centrality, individuals more frequently view daily social interactions through the "lens" of their ethnicity and ultimately perceive/experience more discrimination. Discrimination, in turn, adversely shapes mental health. Results of structural equation modeling supported these predictions across all groups in both studies. Thus, feeling valued in one’s minority group may be a double-edged sword for mental health. Overall, the ISAH model reveals how intragroup processes, when considered from an intergroup perspective, advance our understanding of minority mental health.