The effort to make schools more inclusive, together with the pressure to retain students until the end of secondary school, has greatly increased both the number and educational requirements of students enrolling in their local school. Of critical concern, despite years of research and improvements in policy, pedagogy and educational knowledge, is the enduring categorisation and marginalisation of students with diverse abilities. Research has shown that it can be difficult for schools to negotiate away from the pressure to categorise or diagnose such students, particularly those with challenging behaviour. In this paper, we highlight instances where some schools have responded to increasing diversity by developing new cultural practices to engage both staff and students; in some cases, they have responded to decreasing suspension while improving retention, behaviour and performance. (Contains 10 notes.)