Cinema has a huge impact on the lives of people in this contemporary world. Since it is almost impossible for each one of us to know everyone else that is to interact with people of differed communities cinematic representation of varied ethnic communities plays an important role in determining the image that the world perceives of them. This study attempts to look into three aspects, First being the nationalism discourse through films in the cinema of the third world countries. Second, it analyzes the negative representation of various minority ethnic groups by Hollywood and how it directly influences their perspective about their own in-group. Finally, it inquires into the ethnic cinema created by these ethnic groups in order to re-establish their image by means of a progressive representation of their in-groups.