In recent years Icelandic schools have seen an increase in students with immigrant background. These changes require schools and teachers to respond to the educational needs these students may have. The aim of this article is to examine these changes by looking at the experience of teachers and parents of immigrant students regarding their education. As part of this qualitative research, 38 teachers were interviewed in focus groups with a view to the challenges and experiences of teaching immigrant students. Ten parents were also interviewed individually about their experiences of Icelandic schools and their children's education. The findings revealed that teachers are unsupported in their quest for understanding and managing multicultural education and that the Icelandic school system challenges foreign parents' understanding of school as a traditional place for learning. It is suggested that addressing the lack of collaboration and discussion between both parties on students' needs and parents' expectations could improve the education of immigrant students.