In the context of emigration, immigration, international mobility and globalization, the management contexts of education sites are undergoing deep and sensitive changes making challenging demands on educational leaders. Multiethnic/multicultural schools are emerging as a long-term phenomenon in countries such as Britain against the backdrop of international socio-eco-political developments. The article focuses on the issue of ethnic identity, exploring its effect on leadership effectiveness and student achievement, with a focus on British secondary schools. The issues discussed include the construction and projection of identities, the interplay between the discourses of identity and the students' achievement, leadership and management as it relates to student identities and the management of conflict and tensions in multiethnic schools. The final section suggests a way forward by offering some insights into developing school leadership to engage with wider diversity in complex contexts such as multiethnic Britain and to improve understanding of leading multiethnic schools. (Contains 2 notes.)