In this study, we examined associations among perceived discrimination, ethnic identity dimensions (exploration, resolution, affirmation), and psychological well-being (self-esteem, life satisfaction, flourishing) among 156 Arab Americans. Multiple moderated regression analyses revealed that perceived discrimination was negatively associated, and ethnic identity resolution and affirmation were positively associated, with psychological well-being. Ethnic identity affirmation moderated the association between perceived discrimination and flourishing by buffering the negative effect of perceived discrimination. Ethnic identity resolution and exploration did not moderate the associations between perceived discrimination and psychological well-being. Affirmation both promoted and protected well-being, resolution promoted well-being, and exploration was not associated with promoting or protecting well-being. We discuss implications to help Arab American clients develop and capitalize on their ethnic identity, promote their well-being, and buffer against perceived discrimination.