This chapter proposes a pathway towards an anti-prejudice literacy for promoting racial inclusivity in higher education institutions by identifying how different forms of prejudice operate at a university in Hong Kong. It draws on prejudice reduction dimension of Bank’s (Cultural diversity and education: Foundations, curriculum, and teaching, 6th ed. Routledge, 2016) multicultural education framework and is grounded in empirical data from a group of ethnic minority university students in Hong Kong. The research reported in this chapter found four forms of prejudice against ethnic minority students including language barriers, attire, overlooking diversity among ethnic minorities and lack of professionalism. The chapter explains how these four forms of prejudice operate and suggests that they should constitute the basis of anti-prejudice literacy and highlights the important role of educators for promoting it. The suggested anti-prejudice literacy can be used to help all students deal with their racial prejudice to develop more tolerant and democratic attitudes and values for creating racially inclusive campuses.