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Using data (N= 2,698) from a regional study of the Children of Immigrants in Miami, Florida, this paper investigates the association between national-origin/panethnic homophily and perceived ethno-racial discrimination. Results from logistic regression analyses suggest that panethnic homophily is directly associated with increased odds of perceived discrimination. However, national-origin homophily does not appear to be related to perceived discrimination. In other words, panethnic personal friendship networks heighten individuals’ senses of being discriminated against based on race, ethnicity, or national-origin while national-origin homophily has no effect. This research contributes to the debate around ethnicity, panethnicity and identity salience and to the literature on both homophily and perceived discrimination. I parse out the effects of identity and homophily on perceived ethno-racial discrimination demonstrating that identity only partially mediates the effect of homophily. This extends prior theoretical contributions by McFarland and Pals (2005), Operario and Fiske (2001), and Sellers and Shelton (2003). I connect my findings to principles from Identity theory, Identity centrality, Diffusion, and Chosen Traumas to suggest how homophily might explain the variation in perceived ethno-racial prejudice.