In contemporary Guatemala, Q’eqchi’ Mayas of German descent are reclaiming identities as ‘the improved race’ ( la raza mejorada ), which allows them claim both tradition and authenticity as well as racial whiteness and modernity. While surprising to contemporary observers, these identities have longer histories, rooted in the interwar period, when Guatemalan urban intellectuals and statesmen looked to German-Maya sexual unions as the racial solution to Guatemala’s failure to forge a modern and homogenous nation. Like national racial mixing ( mestizaje ) projects found in Mexico and elsewhere in Latin America, Guatemalan intellectuals in the 1920s and 1930s argued that racial mixing with Anglo-Saxons led not to racial degeneration, but—potentially—to new and more vital races. While long ignored by historical scholarship, hybrid Q’eqchi’-Germans, however, unravel a priori assumptions of German diasporic political and social insularity. By examining the potent symbolic and cultural dimensions Guatemala’s unique mestizaje project had for the formation of both German and Guatemalan nationalist projects during the rise of German National Socialism and Guatemala’s own populist dictatorship under President Jorge Ubico (1931–1944), this article argues for an understanding of German diasporas in Latin America that places them squarely in the transnational space between competing nationalisms and political agendas. By further examining the important material and social dimensions of mixed-race families, this article reveals the crucial ties Germans forged in Latin America and how who counted as German and by what measure was a subject of considerable debate with important political consequences.