The present experiment investigated how avatar-based racial diversity representation of virtual worlds influences racial minority individuals’ expression of their offline racial identity in the virtual realm. Black and White participants, after being exposed to low- vs. high-diversity representation of Second Life, were given an opportunity to customize a Second Life avatar for themselves. Participants also reported how willing they were to reveal offline racial identity in the virtual world. Perceived racial characteristics (Black-looking vs. White-looking) of the avatars customized by the participants were rated by two independent coders who were blind to the objectives and hypotheses of the present experiment. The results showed that White participants’ willingness to reveal offline racial identity and avatar customization were not affected by the levels of avatar-based diversity representation. By contrast, Black participants showed differential responses after being exposed to low- vs. high-diversity representation. When compared with Black participants in the high-diversity condition, Black participants in the low-diversity condition were less willing to reveal their offline racial identity. Furthermore, the avatars customized by Black participants in the low-diversity condition were rated by the independent coders as more White-looking when compared with the avatars customized by Black participants in the high-diversity condition, hinting at virtual racial passing.