The present research work investigates the cultural and racial discrimination as one of the important factors of postcolonial critique of Chinua Achebe’s Arrow of God in which the author situates the Igbo people and their culture before, during and after the arrival of the European people in Igbo land. It unfolds the battle against the colonial rule of the British Empire by the natives of Southern Nigeria as the colonization results in alienation of the natives, destruction of their identity, disruption of the native culture, racial segregation, economic exploitation of people and their territories. It intimates the protagonist Ezeulu’s struggle against the British colonialism and hegemony in the novel. Ezeulu – the chief Priest of Ulu – is cognizant of the imperfections in his culture that is why he endeavours to battle against his enemies by directing his son Oduche to learn Christianity which leads him to surrender his gods to the Christian God. Homi K. Bhabha’s idea of cultural difference, ambivalence and Frantz Fanon’s stance on racism, cultural diversity in postcolonial scenario provide the theoretical framework for this research. This study has explored not only Achebe’s accomplishment to represent his regard and love for the Igbos balanced with a true picture of their lives, clashes and cultural practices but also the racism and scuffle for power between the two cultures. This is a qualitative study in which the text of the novel is analyzed and interpreted to establish the features of racial differences and cultural discrimination.