Multiculturalism is one of the important agendas of our age. Canada is considered as the most successful multicultural society. Furthermore, the Canadian government has suggested Canadian Multiculturalism to be the heritage of tolerance. This paper in opposition to this ideology studies the dark side of Canadian history, racial oppression through Sky Lee’s Disappearing Moon Cafe. Her work shows the silenced and hidden parts in the official Canadian public history. Lee deals with the institutional racism in Disappearing Moon Cafe. It is related to the century-long racial discrimination against and segregation of the Chinese immigrants in Vancouver. She demonstrates that Canada has been a racist country whose racism is based on white chauvinism, their fear of ‘Yellow Peril’ and Eurasians. This paper especially focuses on diaspora, institutional racism, and cultural discrimination and oppression through a bone-searching expedition and the Janet Smith Bill in this work. Canadian Multiculturalism as proposed by the Canadian government has ignored the hidden voices in the history. To become the multicultural society that is harmonious, free and egalitarian, it needs the appropriate awareness and mutual recognition about the past is necessary. Ultimately, being and shaping an authentic pluralistic society means what we can hear the formerly silenced and unheard voices.