Teachers and schools face multiple demands regarding how they should respond to student diversity. Thus, it is crucial to study these different demands in order to understand how they shape inclusive education in practice. Following this line of reasoning, this article presents an analysis of Swedish educational policy documents, which shows that differentiation policies are constructed as answers to different educational problems, and that these problems are framed by different ideals and assumptions about education. Five different policy approaches to differentiation are described and discussed in relation to the ideal of inclusive education. By studying the Swedish case, the article illuminates how different policy approaches can interact over time within the context of an educational system. The policy approaches can thus be understood as ideal types that can be used in analyses of other educational systems. Implications for inclusive education in Swedish schools are addressed in the article by discussing the conditions for schools' and teachers' enactments of the conflicting policy demands.