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Objective: To investigate the impact of New Zealand's (NZ) first wave of COVID‐19, which included a nationwide lockdown, on the health and psychosocial well‐being of Māori, Pacific Peoples and NZ Europeans in aged residential care (ARC). Methods: interRAI assessments of Māori, Pacific Peoples and NZ Europeans (aged 60 years and older) completed between 21/3/2020 and 8/6/2020 were compared with assessments of the same ethnicities during the same period in the previous year (21/3/2019 to 8/6/2019). Physical, cognitive, psychosocial and service utilisation indicators were included in the bivariate analyses. Results: A total of 538 Māori, 276 Pacific Peoples and 11,322 NZ Europeans had an interRAI assessment during the first wave of COVID‐19, while there were 549 Māori, 248 Pacific Peoples and 12,367 NZ Europeans in the comparative period. Fewer Māori reported feeling lonely (7.8% vs. 4.5%, p = 0.021), but more NZ Europeans reported severe depressive symptoms (6.9% vs. 6.3%, p = 0.028) during COVID‐19. Lower rates of hospitalisation were observed in Māori (7.4% vs. 10.9%, p = 0.046) and NZ Europeans (8.1% vs. 9.4%, p < 0.001) during COVID‐19. Conclusions: We found a lower rate of loneliness in Māori but a higher rate of depression in NZ European ARC populations during the first wave of COVID‐19. Further research, including qualitative studies with ARC staff, residents and families, and different ethnic communities, is needed to explain these ethnic group differences. Longer‐term effects from the COVID‐19 pandemic on ARC populations should also be investigated. [ABSTRACT FROM AUTHOR]