The relationship between historically specific ideas of race and national identity in Central America between the onset of Spanish colonialism in the region, in about 1500, and the end of the 20th century is very complicated. The relationship is rooted not only in the political economy of the region and subregions that were under Spanish colonialism, but also in Spain’s resistance to incursions of British colonialism in the area, particularly on the North Coast, well into the late 18th century, and in some areas of Central America into the 1850s. The nexus between the political economy of nation-state formation in the postcolonial setting deepened after break of the Federation of Central America in the late 1830s, especially after the rise of coffee and bananas as major regional exports. Independent governments in Guatemala, El Salvador, Honduras, Nicaragua, and Costa Rica tried to impose “imagined political communities” over these exports that would be different from the colonial identities designed by the Spanish imperialism of the past. In this 20th century context, mestizaje, or ladinizaje, became state sanctioned; it promoted racialized national identities in each of these countries, mostly the idea of ethnicity, albeit with critical regional and subregional differences, particularly between Guatemala and Costa Rica. Historiographies that have been influenced by postmodern sensibilities, particularly critical race theory, the new cultural history, and subaltern studies, have influenced recent understanding of the political economy of race and nationality in Central America.