Racism has become a pandemic which causes unrest among people of the World most especially in the West. The unwarranted discrimination, oppression and aggressive acts against the blacks as a race and the Muslims as a religion (Islam) adherents is now obvious and common in western countries especially the United States of America. As a result of racism, many Blacks in general and Muslims in particular are being denied equal rights as enjoyed by the White and other religious bodies respectively. The Muslims are tagged Terrorists and the blacks as inferior. This paper therefore investigates the implication of racism on the lives of the Muslims and the black people in developed nations with particular attention to the United States of America with a view to suggest ways by which racism could be reduced against the Muslims in particular and the black in general. The study adopted historical method by tracing the history of racism from 1676 to 2020. Recent incidents against the Muslims and the Blacks in general were also discussed. Findings of this study revealed that racism had a great negative impact on the Muslims and the blacks in United States of America. Majority of them were facing one form of discrimination or the other. Many were denied justice while many were molested. The paper concluded that there must be a check to the act of racism to achieve world peace and that coming from other colour other than white does not make one inferior. The study recommended among others that there must be a platform where Heads of Government in every Country around the world should organise constant seminars on how to reduce racism and that people from any part of the world irrespective of race, tribes and religious affiliations should be accommodated anywhere without being discriminated against.