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This article examines the socioeconomic and demographic correlates that are associated with whether biracial children with an Asian parent are racially identified with their Asian parent or with their non-Asian parent. With data extracted from the 5-percent Public Use Microdata Sample (PUMS) of the 1990 census, we take into account explanatory variables at three levels: the child's characteristics, the parents' characteristics, and the locale's racial composition. Our results indicate that the racial identification of biracial children with an Asian parent is to a large extent an arbitrary option within today's prevailing racial classification scheme. We find empirical evidence in support of the theoretical proposition that both assimilation and awareness of Asian heritage affect the racial identification of biracial children with an Asian parent. [ABSTRACT FROM AUTHOR]