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This paper presents the results of a qualitative doctoral study about race, diversity policies, and diversity practices at two large public research universities. Six in-depth interviews were conducted at one Canadian and one U.S. university for a total of 12 interviews. The diversity-related administrative positions represented a range of institutional functions. Drawing on Bonilla-Silva’s (2006) framework for color-blind racism, intersectionality theories, and critical race theory, this study found that the broad institutional conceptualizations of diversity were problematic. Analysis of the participant narratives revealed several themes: disillusionment, institutional power relations, and the institutional control over diversity-related language. This study connects diversity policies and practices in higher education and illuminates some of the tensions and current challenges.