The aim of this paper is twofold: (1) to describe the interplay between religious identification and Spanish educational policy by studying a targeted group of immigrant Moroccan children and young people in metropolitan Madrid and (2) to highlight how such experiences have resulted in the evolution of intercultural education in Spain. The research underpinning this study focuses on targeted students in primary education, compulsory secondary education, non-compulsory education and vocational training and demonstrates that young Muslims of Moroccan descent tolerantly respect the surrounding environment whilst they reaffirm their religious beliefs. They are challenged by Spanish society but receive support from their family, frequently visit the mosque and sustain strong interactions with the Muslim community. They also recognise the respect they receive from their teachers and classmates, which encourages them to uphold their religious beliefs while acknowledging values of co-existence in Spanish society. The study concludes by signalling the need for the educational system to improve its capacity of acceptance of these youth, particularly because some youth do not live free from stereotypes and fears about Muslims.