The study uses ethnographic research from four classes in secondary school as well as from two groups in upper secondary school, to examine everyday racism as an element of the daily institutional lives of students and teachers. The study is based on long-term participant observation and 89 interviews. These were all audio-recorded and transcribed. In Sweden the education of ethnic groups is couched in a discourse of integration and inclusion. However, the research presented shows that the aims of integration and inclusion were not achieved. Unequal and discriminatory educational experiences operated through two related actions: by private everyday racism and through public racism denial. (Contains 1 table and 5 notes.)