Community-based research (CBR) refers to an applied research methodology that is conducted in community settings in partnership between academic and nonacademic participants in research. This article reports on a series of in-depth interviews conducted with 11 Australian CBR researchers between 2008 and 2009. The interviews were designed to explore whether university-employed CBR researchers experience the particular phenomenon of "moral distress," or feelings of helplessness to act in accordance with one's moral values due to systemic or institutional constraints. Study results found that the CBR researchers experienced unavoidable moral distress at varying levels of intensity related to blurred boundaries between settings, participants, and stakeholders. Based on the outcomes of this study, further research and enhanced professional development and training practices are recommended.