Racial and cultural harmony is very much essential for peaceful existence of a society or a country. In the absence of the same, we, even, cannot imagine the harmonious relationships among its various constituents. Jhumpa Lahiri, a very powerful name in the field of diasporic literature, very skillfully portrays the racial and cultural conflicts in her short story collection Unaccustomed Earth. Race, culture and ethnicity are the very significant identities that distinguish one society from another. They help in deciding a separate national identity for the nationals of a country. Lahiri's Unaccustomed Earth provides the readers with different paradigms of the life of the characters with Indian roots and American life. The stories in the collection deal with the large section of second generation Indian-Americans, their cultural traditions, value system, their feeling for home and of homelessness. Lahiri Projects these Indian-Americans as 'self-chosen exiles' and 'transnational hybrids'. As a separate racial and cultural identity, they feel a magnetic field of their 'home culture' operative on their minds. The first generation Indian-Americans are caught in the cultural limbo, whereas the next generation Indian-immigrants are the victims of emotional vacuum and hyphenated existence. My endeavour in the paper is to come out with the hands on experience of the protagonists of the stories of the collection and their realizations in the American setup.