This paper explores racial formation in Aotearoa/New Zealand, and the impacts of state categorisation on understandings of 'mixed race'. Processes of racial formation have undergone significant shifts over time, from initial colonial understandings of racialised domination and hierarchy, to present-day narratives of a multicultural society within a bicultural national framework. Connecting these narratives is a constant thread of racial differentiation, framing inter-group relations within society and underpinning contemporary state and social understandings of (mixed) race. Although New Zealand maintains an innovative method of measuring ethnic (self) identification, this fluid categorisation is constrained by existing classification structures and dominant racial narratives. 'Mixed race' identity is thus firmly positioned within the bicultural/multicultural tension, which characterises 'race relations' in New Zealand. Mixed identities for the individual can be seen as reflecting the 'mixed' nature of the state and society, with the narrative of a bicultural nation providing a macro level depiction of personal mixedness.