Advancing beyond individual-level approaches to coping with racial trauma, we introduce a new psychological framework of radical healing for People of Color and Indigenous individuals (POCI) in the United States. We begin by providing a context of race and racism in the United States and its consequences for the overall well-being of POCI. We build on existing frameworks rooted in social justice education and activism and describe a form of healing and transformation that integrates elements of liberation psychology, Black psychology, ethnopolitical psychology, and intersectionality theory. We briefly review these conceptual foundations as a prelude to introducing a psychological framework of radical healing and its components grounded in five anchors including: (a) collectivism, (b) critical consciousness, (c) radical hope, (d) strength and resistance, and (e) cultural authenticity and self-knowledge. We conclude with a discussion of the applications of radical healing to clinical practice, research, training, and social justice advocacy.