Using data from the Netherlands Housing Survey 2006 (WoON) and neighborhood data from Statistics Netherlands, we investigate the relationship between individual ethnicity and ethnic neighborhood composition on the one hand, and satisfaction with the residential environment on the other, among the four largest ethnic categories in the Netherlands. We set three theoretical approaches next to each other and derive hypotheses from each. The class approach states that ethnic differences in residential satisfaction are caused by differences in socio-economic status. The race approach states that these differences are caused by discrimination. The culture approach states that there are cultural differences in residential preferences, leading to differences between ethnic groups in the way in which ethnic neighborhood composition affects residential satisfaction. We find that those of Dutch origin are the most satisfied with the neighborhood, and Turks and Moroccans the least. These differences in satisfaction largely disappear after controlling for socio-economic status. This result is in line with the class approach, and in contrast with the race approach. In line with the culture approach, the ethnic composition of the neighborhood plays a role in residential satisfaction. Native Dutch in particular seem to prefer living in residential environments with few non-western immigrants.