This study investigates how teachers interact with immigrant-origin youth in school-based contexts of reception that mediate youth's educational opportunities. One understudied context is sheltered instruction, where English learners (ELs) are placed into separate content-area courses to target their linguistic needs. This qualitative study highlights the unintended consequences of ELs' placements by examining 3 teacher cases in depth. Teachers' accounts reveal that EL content courses designed to increase access were, in fact, stigmatizing spaces where students made social distinctions and engaged in impression management to mitigate perceptions that they lacked intelligence because of their programmatic placements. Teachers also managed stigma in distinct ways, representing different orientations and communication strategies in response to students' experiences of stigma. This investigation raises questions about the tensions embedded in how language status, race, and classification intersect with the very solutions intended to ameliorate inequalities, as well as teachers' roles in the education of immigrant EL-designated youth.