In the first study, 50 self-identified Asian-American university students volunteered to participate in an experiment that exposed them to scenarios designed to vary the nature of insults delivered in a public setting. The nature of the insult varied to focus on individual characteristics (overweight) or collective ascribed characteristics (African-American and Asian-American). Instruments then measured participants' perceptions of the extent of harm from the insult, punishment severity warranted for the offender, and psychological investment in Asian-American social identity. The second study replicated and extended the first study. The extended component further distinguished hate speech from other forms of offensive behavior by comparing it to petty theft. This comparison clarified how minorities view hate speech relative to a broadly recognized form of criminal behavior. The findings of both studies indicated that the targets of racial hate speech wanted more severe punishment for the perpetrator than for other forms of insulting speech (overweight) as well as for petty theft. Racial hate speech resulted in more extreme emotional responses; and for Asian-Americans, it had a depressing influence on collective self-esteem. Sense of ethnic identification moderated punishment responses only in the first study. Theoretical and practical implications of the findings are discussed. 1 figure and 27 references