Since the fifteenth century, the term "mulato" has been used to describe individuals of mixed African and European ancestry. Through an examination of mulatos from sixteenth century New Spain this piece complicates our understanding of the usage and implication of this socio-racial ascription. Both demographic and anecdotal evidence suggests that in the early colonial period mulato frequently described individuals of mixed African-indigenous ancestry. Moreover, these individuals may have represented the majority of individuals so named. Additionally this piece uses several case studies to demonstrate that Afro-indigenous mulatos formed frequent and long-term connections to indigenous society and culture. Through acculturation and familial ties, early mulatos helped to encourage interethnic unions and may have played a key role in the growth of a highly varied, multi-ethnic colonial population in Mexico. By highlighting these important trends, this study challenges our traditional assumptions concerning the category of mulato and suggests that we must avoid the homogenizing tendency inherent in such terminology.