Prince William's spokesman has slammed the 'racist' comments made to a charity worker by a royal aide.
Buckingham Palace earlier today released a statement confirming one of the late Queen's friends had resigned over the alleged remarks.
Lady Susan Hussey is said to have questioned charity operator Ngozi Fulani about her ethnicity while attending the Queen Consort Camilla's reception on violence against women yesterday.
Ms Fulani, who runs a black women's domestic abuse organisation, said that she was asked: "What part of Africa are you from?"
A Kensington Palace spokesperson - on behalf of the Prince of Wales - has since said: "I was really disappointed to hear about the guests' experience at Buckingham Palace last night.
"Obviously, I wasn’t there, but racism has no place in our society.
"The comments were unacceptable, and it is right that the individual has stepped aside with immediate effect."
Buckingham Palace confirmed it had launched an investigation into the "unacceptable and deeply regrettable comments".
Shortly after, a spokesperson said the individual in question had stepped down from their role.
They added: "We take this incident extremely seriously and have investigated immediately to establish the full details.
"In this instance, unacceptable and deeply regrettable comments have been made.
"We have reached out to Ngozi Fulani on this matter, and are inviting her to discuss all elements of her experience in person if she wishes.
"In the meantime, the individual concerned would like to express her profound apologies for the hurt caused and has stepped aside from her honorary role with immediate effect.
"All members of the Household are being reminded of the diversity and inclusivity policies which they are required to uphold at all times."
Lady Hussey, 83, was one of the late monarch's most trusted friends and is Prince William's godmother.
Hussey was always referred to as the “head girl” as the most senior and trusted of seven ladies in waiting who dedicated decades of their lives in service to the Queen.
She was one of only three still kept on by King Charles at the Palace.
Ms Fulani shared the exchange on Twitter, which has since sparked outrage.
In a conversation that followed, the member of the household allegedly continued to ask "what nationality are you?", "Where do your people come from?" and "what part of Africa are you from?".
She also allegedly said: "I can see I am going to have a challenge getting you to say where you're from. When did you first come here?"
Eventually, Ngozi said she replied: "I am a British national, my parents came here in the 1950s," before Hussey responded with: "Oh, I knew we'd get there in the end, you're Caribbean."
Ngozi said she then corrected the aristocrat by responding with: "No, I am of African heritage, Caribbean descent and British nationality."
Ms Fulani was at the palace for a meeting attended by the Queen Consort and other notable royals for an event speaking on violence against women.