Although demographic shifts continue to spark interest in the racially transformative effects of immigration, researchers routinely lament the lack of dialogue between race and immigration scholarship. We use recent research on panethnicity to illustrate the conceptual divides that exist between the two subfields. Panethnicity research has shed new light on the formation of group identities and political mobilization, but we contend that it is problematically divorced from research on racialization. Panethnicity scholars largely view racialization and panethnic group formation as separate processes, with the latter sequentially following the former. In this article, we argue that this analytical distinction both reflects and reifies the divide between race and immigration research and yields an incomplete understanding of the group formation process. We propose an ethnoracialization model to show how the concept of panethnicity can be reconfigured to develop a robust account of group formation and to bridge the much-lamented divide between race and immigration research.