Given a compact complex algebraic variety with an effective action of a finite group $G$, and a class $\alpha \in H^2(G,U(1))$, we introduce an orbifold elliptic genus with discrete torsion $\alpha$, denoted $Ell^{ \alpha}_{ orb}(X,G, q, y)$. We give an interpretation of this genus in terms of the chiral de Rham complex attached to the orbifold $[X/G]$. If $X$ is Calabi-Yau and $G$ preserves the volume form, $Ell^{ \alpha}_{ orb}(X,G, q, y)$ is a weak Jacobi form. We also obtain a formula for the generating function of the elliptic genera of symmetric products with discrete torsion.
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