This study investigated the situation of ethnic minority students in predominantly white British schools, highlighting factors affecting their educational achievement and examining the perspectives of ethnic minority students and their parents and teachers. Surveys of the performance of over 34,000 students in predominantly white schools in 35 local education authorities indicated that white children in mainly white schools outperformed those in urban, multiethnic schools. Children from black Caribbean, Indian, and Pakistani background in the same schools outperformed their urban counterparts on one exam but not a second. Aspects of students' ethnicity were central to their self-identification. There was considerable variation in how far they would have liked to see their ethnic identity expressed more fully and openly at school. A significant proportion of minority students reported race-related name calling or verbal abuse at school. No school had a fully developed strategy for preparing students through the curriculum for life in a diverse society. No school had a strategy in place for supporting English as a Second Language students beyond initial stages. Teachers reported that in most case, the issues with which this research was concerned had not been covered in their initial or inservice training. (Contains 85 references.) (SM)