On Twitter, some users uncharitably referred to Davuluri, the daughter of a gynaecologist who emigrated from India 30 years ago, as an Arab and a terrorist with ties to Al Qaeda.
A user with the handle @emi_adkins tweeted, "It's called Miss America. Get outta here New York you look like a terrorist."
Some like Luke Brasili sought to link Davuluri's win with the anniversary of the September 11 terror attacks in the US. "9/11 was 4 days ago and she gets Miss America?" he tweeted.
Davuluri, who described her performance of a Bollywood-style dance at the Miss America pageant a victory for diversity in the US, appeared unfazed by racism.
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"I have to rise above that...I always viewed myself as first and foremost American," the New York native told a news conference last night after being crowned.
"I'm thankful there are children watching at home who can finally relate to a new Miss America," she said.
Davuluri, who says she would like to become a doctor like her father, is the first Miss America whose family comes from India.
Twitter user @CJlovebug posted: "This world is so ignorant. #MissAmerica Indian or not had every right to gain the title of MissAmerica. This is why I want to leave America!"
"Stop hating, America. She's one of us..." tweeted Emma Sydney, while @ericatessa wrote: "I think it's fabulous that @NinaDavuluri won #MissAmerica! America is about diversity. Not intolerance.