Germany has undergone a significant transformation from a nation that saw itself as culturally homogeneous to a society characterized by diversity and immigration. The education system, however, continues to struggle to meet the needs of children and young people from diverse backgrounds. This manifests in forms of unequal treatment and discrimination that impede the effective integration and education of students from different ethnic, linguistic, cultural, and religious groups. This is particularly true for students from nonacademic, low-socioeconomic status backgrounds, as well as for students from immigrant families: categories that frequently overlap. However, there are promising educational interventions and initiatives that address issues of democracy, diversity, and equal opportunity in schools. I provide an overview of select issues in the production and reproduction of inequality in the German school system and in everyday teaching practices, with a focus on including students of immigrant origin.