In this article, we use ethnographic data to explore school-based perceptions of racism. We draw on the findings of a one-year study conducted in two upper secondary classes in a Swedish school. The starting point of the analysis was student discussions of racism in the school and the surrounding neighbourhood, which prompted an examination of teacher and student responses to racist and nationalist ideas. We concluded that the school seldom acted in line with recommended approaches for promoting non-racist and intercultural education. We suggest that the response is related to educational ideals that emphasise learning "objective" facts (as opposed to values) and a de-contextualised view of teaching.