The incident happened at about 23:00 on Wednesday.
The 21-year-old victim was walking along the road from the top of Baker Street when an unknown man shouted racially-aggravated abuse at him.
The suspect is white, in his late teens or early 20s, between 5ft 7in and 6ft tall, with red or blond short hair.
He is of a stocky build and was wearing a red or orange hoodie.
Officers are urging anyone who can assist them to come forward.
Insp Mike Bennett said: "For this young man to be subject to such unprovoked abuse as he went about his daily business is shocking.
"This behaviour is absolutely unacceptable in our community and I'd urge anyone who witnessed this incident, or has information which can help with our inquiries, to come forward."
Police are appealing for witnesses after a young man suffered "shocking" racial abuse while walking on Hawick's High Street.