Racism has been rampant in American society even in the post-colonial eras. Critical Race Theory emphasizes that racism in European countries never died but only hid better. The racial attitudes of the white races not only impact the minority races as an individual but also prove to be hazardous for the families that are either multi-racial or belong to minor races leading to dysfunctional families. Zadie Smith’s On Beauty is about two families the Belsey family and the Kipps family, the novel shows that racism impacts the relationship of two families with each other and also affects the individual relationships within one family. The novel highlights that American society may claim to have resolved racial issues but the real-life scenarios show that racism still exists and it impacts the social and personal relationships and attitudes of individuals. Furthermore, it reveals that the social set-up is created in a way that hampers the growth of colored races thus proving the claims of critical race theory.