Contemporary anti-Muslim sentiment in Australia is reproduced through a racialization that includes well rehearsed stereotypes of Islam, perceptions of threat and inferiority, as well as fantasies that the Other (in this case Australian Muslims) do not belong, or are absent. These are not old or colour-based racisms, but they do manifest certain characteristics that allow us to conceive a racialization process in relation to Muslims. Three sets of findings show how constructions of Islam are important means through which racism is reproduced. First, public opinion surveys reveal the extent of Islamaphobia in Australia and the links between threat perception and constructions of alien-ness and Otherness. The second data set is from a content analysis of the racialized pathologies of Muslims and their spaces. The third is from an examination of the undercurrents of Islamaphobia and national cultural selectivity in the politics of responding to asylum seekers. Negative media treatment is strongly linked to antipathetic government dispositions. This negativity has material impacts upon Australian Muslims. It sponsors a more widespread Islamaphobia, (mis)informs opposition to mosque development and ever more restrictive asylum seeker policies, and lies behind arson attacks and racist violence. Ultimately, the racialization of Islam corrupts belonging and citizenship for Muslim Australians.