Ethnicity and Cultural identity have become the major issues of discussion and criticism in the postcolonial era. Rohinton Mistry is one of the eminent international postcolonial writers of Parsi origin who is now settled in Canada and writes from there. His primary aim is to analyse the problems of the microscopic Parsi community. Parsi writing in English especially after India’s independence has become purely ethnocentric. Mistry is not an exception. His writings are characterized both by ethnocentric and minority traits. He delineates all the concerns of the present day Parsis. The Parsis experience a sense of anxiety by being the minuscule diasporic community in India where Hindus dominate. The anxiety roots from the insecurity and as a result a sense of identity crisis looms large in the hearts of the Parsi people. All the eleven stories of the Tales from Firozsha Baag (1987) address the exigencies of the Zoroastrian community with their several problems and perspectives. The present paper seeks to analyse how the tales of Mistry fourgrounds this ethnic anxiety influence which is inherent in the hearts of the Parsi folk.