Education for multiculturalism, founded on liberal-democratic values, is a frequent topic of educational discourse that has not been ignored by Muslim Arab schools in Israel. In general, Arab society is undergoing change processes, in transition from a traditional to a modern society; traditional values are challenged, engendering social crises. This paper discusses whether the multicultural approach can be successfully imparted in a society with preexisting structured values. It focuses on the school's role as a socialization agent that needs to adapt itself to a changing sociocultural reality, discussing the school's involvement in creating a value crisis, since it transmits the Islamic perception of the principles, foundations, and goals of education for multiculturalism. It is concluded that education for multiculturalism in Arab schools lacks internal logic, conflicts with and even undermines the Arab society's sociocultural values system, is inappropriate as a means to supervise the necessary change processes, and thus contributes to a values crisis.