SUMMARY
The purpose of this study was to examine the correlation between perceived discrimination and psychological well-being of Manjo ethnic minority in Kaffa zone, Ethiopia. One hundred and forty nine (149) study participants from the Manjo ethnic minority were randomly selected and filled out the perceived discrimination and psychological well-being questionnaire scales. Pearson Product moment correlation was computed to determine the strength and direction of relationship between their perception of discrimination by others and the psychological well-being report. Perceived discrimination is a variability of thought that results from an act of segregation and distancing of an individual or group of individuals mainly because of bias and prejudice. The psychological well-being variable was measured by six dimensions, which are named as autonomy, environmental mastery, personal growth, positive relationship with others, purpose in life and self-acceptance of individuals. The result of the study showed the presence of a strong and significant negative correlation between the Manjos’ perception of discrimination they experience from other ethnic groups and the corresponding psychological well-being state.