Hawaii is often perceived as the "Land of "Aloha," a racial paradise where everyone gets along. But do we? The author explores Hawaii's distinct cultural dynamics with pre-service teachers in a multicultural education course that problematised race and ethnicity. Using an inquiry approach and culturally relevant activities, the class examined the social inequity that exists between privileged "non-minorities" like Japanese, Chinese and Whites, and "disadvantaged minorities" like Filipinos, Native Hawaiians and Samoans. This study found that living among diversity in Hawaii made recognising racism and social inequity difficult. Patterns of student engagement reflected one's positioning in Hawaii's racial and socioeconomic hierarchy. Students from privileged groups minimised and deflected their role in contributing to racism, while students from disadvantaged groups assumed a more critical stance towards society. This study reframes the dialogue on race in education and provides implications for multicultural teacher education. (Contains 3 notes.)