This study explored the state of desegregation and integration in South African schools 11 years after the demise of Apartheid. Three classrooms in three desegregating schools with different histories and race profiles were visited. Overall, each classroom was visited on 10 occasions over a period of 2 weeks. Direct observation was the main data gathering technique. The main findings were that desegregation as assimilation is occurring in these schools, but institutionalized racism is still pervasive. Manifestations of this at the classroom level include negative stereotyping of Black students, selective empathy, discriminatory seating arrangements, devolution of authority to students on racial basis, and aversion to African languages. The study concludes that the Constitution of South Africa is being given the most minimalist interpretation where racial desegregation is concerned. It concludes further that for system change to occur at school level, a radical shift from thinking about desegregation to contemplating substantive integration must be undertaken. Only in this way is it possible to introduce anti-racism as a transformative device into schools.