This paper explores recent changes in Peruvian national education policy and the effects these have had on indigenous populations. Situating Peruvian education reforms within a context of international multicultural development, the paper traces the history of reforms as implemented by national and international actors in varying degrees and combinations. Against this historical backdrop, the paper focuses on changes in the 1990s that in theory promote bilingual intercultural education on a nationwide scale for all Peruvian citizens, but in practice are concentrated in rural indigenous areas. In particular, the paper examines some gaps between intercultural education rhetoric and implementation. I conclude with a discussion of the uneven achievements and unintended consequences of bilingual education programmes and provide some suggestions for policy-makers in the region.