Research suggests that employees form psychological contracts (i.e., unwritten, mutual obligations between employers and employees) about diversity, equity, and inclusion (DE&I; Lee et al., 2021; Yueng & Sheh, 2020), yet little is known about how encounters with subtle racial discrimination at work may trigger violations of these contracts and subsequently influence relational outcomes. Grounded in psychological contract theory (Rousseau, 1989), this project investigates whether and why experienced and witnessed workplace racial/ethnic microaggressions, a subtle form of discrimination that targets racial/ethnic minority group members, may relate to lower trust and higher distrust in leaders and organizations via psychological contract violation. Additionally, this study examines two boundary conditions: (a) the moderating effect of DE&I psychological contract strength on the relationship between microaggressions and psychological contract violation, and (b) the moderating effect of satisfaction with leader responses to microaggressions on the relationship between psychological contract violation and the focal outcomes. Panel data collected from 315 employees across 8 weekly surveys was analyzed using multilevel structural equation modeling (MLSEM). Results suggest that across participants, psychological contract violation mediates the relationship between microaggressions and the focal outcomes. No support emerged for the hypothesized boundary conditions. Theoretical implications and practical recommendations are discussed.