This study explores the mechanisms of racial discrimination in U.S. independent filmmaking. To answer this question, I combine the theoretical toolkits on Hollywood discrimination and Bourdieu’s theory of cultural production. I employ in‐depth, semi‐structured interviews with 30 U.S.‐based independent filmmakers of color, and observations of public discussions at film festivals in the greater Los Angeles area. I find that despite independent film’s inclusive and non‐commercial discourses, many of the mechanisms of racial exclusion that underlie Hollywood’s lack of diversity also exist in independent film: the economic uncertainty of creative labor, racialized market logics, the economic stigmatization of artists of color, and the reliance on closed social networks for career advancement. Furthermore, I also find that non‐commercial factors in the field of independent film also constrain the ability for filmmakers of color to make art reflective of their experiences, form mutually beneficial collaborations with other artists of color, or invest their time in projects that are culturally innovative. These findings suggest that even at the margins of mainstream cultural production, mechanisms of racialization can still operate where racial prejudice and racialized economics outweigh artistic independence.