In recent years, a number of studies have explored the link between Zionism and the latent racism prevalent in Israeli society. As a result of these studies, it has become clear that successive generations of Israeli citizens (and non-citizens) are exposed to a single historical and cultural narrative. Such a narrative is intentionally designed to strengthen the emergent ethno-national character of Israeli democracy. This study examines a selection of Jewish--Israeli teachers' reflections on teaching in Israeli high school history and civics classrooms, and the institutionalized racism that they encounter both within the textbooks and from their students. I will demonstrate that these reflections are examples of negotiating "dilemmatic spaces", resulting from the unique 'structural conditions and relations to everyday practices' that Israeli educators must face. Israeli teachers must mediate the curricular materials vis-à-vis the degrees of freedom they are provided to teach counter-historical narratives and their own emotional responses to both the content of the textbooks and their students' reactions to the dominant national narrative presented therein.