The purpose of this study was to gather teacher and student perceptions of the educational benefits that emerge from providing diverse learning environments for students attending an inter-district magnet school. Research Questions were (1) In what ways do teachers and students report that the magnet school offers an ethnically diverse learning environment that leads to the education benefit of openness to diversity? (2) In what ways do teachers and students report that the magnet school offers an ethnically diverse learning environment that leads to the education benefit of cognitive development? (3) In what ways do teachers and students report that the magnet school offers an ethnically diverse learning environment that leads to the education benefit of self-confidence? Chang, Denson, Saenz, & Misa (2006) provided the conceptual framework for identifying educational benefits related to diversity for this study. Data sources included (1) a survey presented to all full time instructional faculty members in one urban interdistrict magnet school, (2) a survey presented to grade 9-12 students in one urban inter-district magnet school, and (3) individual interviews consisting of purposely selected students on the basis of grade, ethnicity, and academic achievement level. Qualitative findings for all three research questions suggested that the magnet school experience has had a substantial and favorable impact on students increasing their knowledge of other cultures, discussion of issues related to race, ability to promote racial understanding, their problem-solving skills, their ability to cooperate with others, ability to resolve conflict and their leadership abilities. Quantitative findings for Research Question 2 showed a progression by grade level for cooperating with others and teacher survey results showed significant differences by grade level for problem-solving. Conclusions of the study are as follows: Students perceived the following areas as having been positively influenced by attending the magnet high school: (1) increased knowledge of other cultures, (2) interaction with people of other races and ethnicities, (3) academic ability, (4) problem-solving skills, (5) ability to cooperate with others, (6) ability to resolve conflict, (7) ability to consider different perspectives, (8) leadership skills, and (9) comfort level of interaction with people of other ethnicities. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]