The culturally diverse higher education settings is conceptualized to facilitate indigenous university students in Taiwan to establish a deeper connection with and understand the meaning of their ethnic identity. Guided by the ethnic identity development theory and school ethnic-racial socialization framework, we asked two research questions: (1) What racial challenges did indigenous students in Taiwan experience at their colleges? (2) How did students utilize college resources to overcome racial challenges and develop a meaningful sense of ethnic identity? A participatory research approach using narrative inquiry was employed (N = 20). Convenience sampling and thematic analysis were adopted. Six themes emerged. Racial challenges were: (1) intergroup discrimination; (2) internal stratification; (3) ethnic identity confusion. Social resources in higher education were: (4) confronting discrimination together; (5) peer appraisal support and encouragement; (6) multicultural social interactions. Research, practice, and policy implications were discussed.