The novel's protagonist is Donald Duk—and many of the other characters are his family members. Duk is a member of a large Chinese American family living in California; it was Donald’s grandfather who emigrated from China.

The novel follows Donald as he learns to have pride in his Chinese heritage and to challenge racist stereotypes and the historical erasure of Chinese contributions to American history. Most of this information comes from conversations with his family, but some of it is obtained as revelations in dreams.

Born and raised in the United States, Donald initially imagines that he can fully assimilate. He identifies with glamorous old-time film stars such as Fred Astaire. Throughout the novel, Donald develops from turning his back on his heritage to embracing it, both through studying history and performing in the New Year's dragon dance. He takes pride in learning about Chinese folk heroes and real-life railroad workers.

King Duk, Donald's father, is a successful restaurant owner; his restaurant serves international—not just Chinese—cuisine. King's hobby is collecting model military airplanes, which will be part of a New Year's ritual. King tells his son about a mythical hero, Kwan Kung and plays the role in an opera. Born in the United States of Chinese parents, King represents second-generation acculturation into the American lifestyle and the struggles that the children of immigrants have to endure in order to achieve success.

Daisy Duk, Donald's mother, primarily cares for the family; she seems to have less influence on her son than his father does.

The older Donald Duk, King's uncle, is an enthusiast for Chinese opera and sponsors its performance at the New Year's festival. He is a wealthy man who enjoys demonstrating his generosity, such as through gifts of food.

Penelope and Venus Duk are Donald's twin sisters. Although they rarely share their brother's interests, they sometimes intervene to help him negotiate with their parents.

Arnold Azalea, Donald's school friend, is a white Anglo-American who is interested in ethnicity and supports his friend's exploration of his heritage.