Guided by the perspective of marginality theory, the author examines the problems that have faced the mixed-blood progeny of Japanese women and American military servicemen who were reared in father-absent homes and institutions in Japan. The group has experienced discrimination according to racial, class, and family background characteristics and has encountered barriers in the areas of education, employment, marriage, and citizenship or legal status. Although culturally Japanese, mixed bloods are often stereotyped by Japanese as cultural oddities or aliens. Black Japanese have been especially victimized by discrimination and negative stereotypes. Although most American-Japanese have accepted their marginal situation with a fate-orientation common among Japanese, some have responded maladaptively with deviant patterns of aggressive or self-destructive behavior. Others have sought emigration, and a few may have "passed" into Japanese society. The author places these findings in the context of existing research on the Burakumin and Korean minorities in Japan, Korean Amerasians, and Eurasians in East and South Asia.