Twenty years after Nelson Mandela became President of South Africa, deeply entrenched inequalities and injustices are still at the core of the country's social fabric. South Africa's public and private sectors continue to battle with the situation and higher education institutions are no exception. The South African Ministry of Education has identified systemic problems within the institutional cultures of universities as one of the key obstacles to change. This article focuses on a racist incident that occurred at the University of the Free State (UFS) in South Africa in 2007. The incident shook the university's institutional culture to the core and became a catalyst for change for universities across the country. We portray the institutional culture of the UFS on the basis of a series of interviews with management and student leaders who personally played key roles in handling the incident in 2008. The interviews reveal some of the "story stock" within the institutional culture and highlight four interrelated dimensions of contestation. The stories also show that the interviewees frequently situate and justify their beliefs and actions in an intergenerational chain. Finally we consider some of the implications of our findings for the ongoing reconstruction of post-apartheid institutional cultures in higher education.