Media representations have significant power to shape opinions and influence public response to communities or groups around the world. This study investigates media representations of Islam and Muslims in the American media, drawing upon an analysis of reports in the New York Times over a 17-year period (from Jan.1, 2000 to Dec. 31, 2016) within the framework of Critical Discourse Analysis. It examines how Islam and Muslims are represented in media coverage and how discursive power is penetrated step by step through such media representations. Most important, it investigates whether Islam and Muslims have been stigmatized through stereotypes, prejudice, and discrimination. The findings reveal that the New York Times’ representations of Islam and Muslims are negative and stereotypical: Islam is stereotyped as the unacclimatized outsider and the turmoil maker and Muslims as the negative receiver. The stereotypes contribute to people’s prejudice, such as Islamophobia from the “us” group and fear of the “them” group but do not support a strong conclusion of discrimination.