Abstract Is social assistance being used to contain ethnic and racial unrest in developing countries? There is a growing literature on social assistance policies in the Global South, but this literature largely focuses on economic and demographic factors, underestimating the importance of contentious politics. The case of Mexico shows that social assistance programs are disproportionately directed to indigenous populations, leading to diminished protest participation. Drawing on data from the 2010, 2012 and 2014 rounds of the Latin American Public Opinion Project, we apply multivariate regression analysis to examine the determinants of social assistance program participation in Mexico. Our study finds that after controlling for income, household size, age, education, and employment status, indigenous ethnic identity is a key determinant in who benefits from social assistance in Mexico. Our results show that high ethnic disparity in social assistance is not only due to higher poverty rates among the indigenous population. Rather, indigenous people receive more social assistance mainly because of their ethnic identity. In addition, this study demonstrates that indigenous people who benefit from social assistance programs are less likely to join anti-government protests. We argue that this ethnic targeting in social assistance is a result of the fact that indigenous unrest has become a political threat for Mexican governments since the 1990s. These results yield substantive support in arguing that the Mexican government uses social assistance to contain indigenous unrest. The existing literature, which is dominated by structuralist explanations, needs to strongly consider the contentious political drivers of social assistance provision in the Global South for a full grasp of the phenomenon. Social assistance in Mexico is driven by social unrest and this suggests that similar ethnic, racial, religious and contentious political factors should be examined in other developing countries to understand social assistance provisions.