In this paper, I examine the development of the second stage of Chicano muralism and compare it with the first stage of the Chicano Mural Movement that was born out of the Civil Rights Movement. I then discuss the different aspects of the first stage in relation to the birth of institutionalized public art and question how Chicano murals influenced public art and, conversely, how mainstream public art transformed some of the attitudes and practices of Chicano muralism. Chicano murals initially functioned as a political mouthpiece for Chicano’s human rights and as a tool to recover the Chicano people’s cultural pride and legacy. However, the murals gradually developed into public art projects supported by the city or federal governments, who regarded them as an economic way to effectively communicate with the community. In this process of institutionalization, muralists became increasingly concerned with aesthetic quality and began to work more systematically. For example, amateur artists or community participants who produced the earlier murals were transformed into mural experts. Chicano essentialism and the politically volatile themes used previously were phased out and the new murals began to incorporate diverse subjects and people, for example, native culture, Blacks, and women. This phenomenon reflected the changing emphasis on multicultural understanding. This kind of institutionalization did not always draw positive results. Inadequate funds were the primary concern over the actual subject and creation of the mural work. Artists reduced the strong political metaphors and aestheticized the mural forms. However, their work was productive as well: thorough research on wall conditions and painting techniques was conducted and new processes and designs were developed. This paper examines the murals created for the 1984 Los Angeles Olympic Games, Judy Baca’s works, and the Balmy Alley Mural Environment project in San Francisco’s Mission District. Works by Las Mujeres Muralistas in Mission District, in particular, show case colorful patterns and the Latin American indigenous culture, exploring new interpretations of old icons and design. They challenged the stereotypical depictions of females and presented alternative visual languages that revised the male-centered mural aesthetics and elaborated on the aesthetics of Rasquachismo.