It is not known how discrimination might affect diabetes-related distress (DRD), an important correlate of diabetes outcomes. We examined correlates of discrimination and the influence of discrimination on DRD and depressive symptoms (DS) for African Americans and Latinos with type 2 diabetes. We analyzed survey data (n = 157) collected at enrollment into a diabetes management intervention. Using multiple linear regression, we examined correlates of discrimination and the association between discrimination and DRD and DS. Discrimination was significantly associated with higher DRD for Latinos (b 1.58, 95% CI 1.08, 2.31, p < 0.05), but not significant for African Americans (b 0.96, 95% CI 0.59, 1.57). Discrimination was marginally significantly associated with more DS for Latinos (b 1.43, 95% CI 0.97, 2.12, p < 0.10), but not significant for African Americans (b 1.21, 95% CI 0.87, 1.70). These findings suggest the need to address stressors unique to racial/ethnic minorities to improve diabetes-related outcomes.