A pressing question about the expansion of higher education is whether it tends to be inclusive, in the sense of bringing in larger proportions of persons from disadvantaged backgrounds, or diversifying, in that higher education tends to differentiate as it expands, or both, by bringing more persons into an increasingly stratified system of higher education. This paper addresses the question with evidence on higher education expansion in Scotland. Data are drawn from six waves of the Scottish School Leavers Survey from the late 1980s to the start of the new millennium. Binary and multinomial logit models are estimated to examine changes in inequality during this period, which was characterised by substantial expansion in both secondary qualifications and postsecondary enrolment. The results show that, in contrast to the general pattern of stable inequality observed in most nations, overall social inequalities in Scottish higher education enrolment declined over time. However, this decline did not occur in all sectors but was limited to the lowest-status institutions. These findings illustrate how expansion can serve both inclusive and diversifying ends. (Contains 6 notes and 7 tables.)