The purpose of this ethnographic study was to analyze seventh grade students' and teachers' perceptions of literacy learning in language arts and reading classes. This paper includes a report of a section of this study that focused on discussions about literature. The impact of this diverse school culture on teachers' literacy instruction and students' classroom experiences was also interpreted. Applying critical race theories, the researcher collected data in the form of interviews and classroom observations. Results seemed to indicate that, at least for this classroom, students interpreted small group discussions as problematic. Students preferred whole class discussions about literature because disagreements about meaning were monitored and negotiated by the teacher. Implications for teaching critical literacy skills through class and small group discussions are included. (Contains 2 tables.)