This monograph examines the nature of ethnicity as a general feature of human society, as it functions in Australia, and how it is used in the development of policy on multicultural education in Australia. Three influential accounts of ethnicity are examined, and it is argued that, although different, the theories share common problematics and similar sets of assumptions. Sections discuss the "revival" of ethnicity, the concept of ethnicity, the celebration of ethnicity in Australia, and the possibilities and problems of multiculturalism. The following additional readings are offered: (1) "From Race to Ethnicity" (M. de Lepervanche); (2) "Multiculturalism and Education Policy" (M. Kalantzis and B. Cope); and (3) "Really Educating Migrant Children" (P. Kringas). An annotated bibliography listing nine books on ethnicity is included. (CB)