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Drawing from an indepth, multimethod case study approach, we examine the organizational evolution of US-based white prison gangs. Informed by organizational and racial formation theory along with micro interactional approaches to identity formation, we trace the diffusion of white prison gangs as localized (emerging within a specific penal facility) entities that over time develop into hybrid organizations existing across multiple penal facilities and outside of institutional settings (on the streets). As part of our analysis, we focus on a number of cases including the Aryan Brotherhood, the Aryan Warriors, the Aryan Circle, and European Kindred. Relying on process tracing, we identify three primary phases of development: protectionism; politicization; and criminalization. The findings suggest important verification for the influence of institutional isomorphism on the development unconventional groups and the types of organizational interests that seem to represent the greatest degree of long-term endurance.