The prince reportedly told black comedian Stephen K. Amos that "you don't sound like a black chap" after he performed at the 60th birthday of Harry's father, Prince Charles.
According to People, the ginger beach-goer was attempting to be funny but it was lost on the comedian, who told his story on the UK's The Wright Stuff talk show yesterday.
"I wanted to say, 'How is I supposed to sound?'" Amos said.
"Many young people will be disgusted by his remark," said Naomi Byron, national secretary of Youth Against Racism in Europe, told the Daily Mirror. But it is not just Prince Harry that is at fault," she stated. "The aristocratic, rich circles he moves in obviously don't have a problem with this kind of racist stereotyping."
"We don't comment on allegations about private conversations involving the prince, and we are unable to confirm whether it did or did not take place," Prince Harry's rep said.
Prince Harry was forced to publicly apologize for referring to a fellow officer as a "Paki" and a "raghead" in a video clip from 2006 recorded during his military service. (AP)