In response to the 1999 Macpherson Report on the Stephen Lawrence Inquiry, the Government gave OFSTED lead responsibility for monitoring how schools address and prevent racism. This research, undertaken for the Commission for Racial Equality, evaluates how OFSTED is fulfilling that responsibility. Through a meticulous analysis of inspection reports and documents, the researchers reveal how, even where there is compelling evidence of racial inequalities in a school's educational provision, issues concerning ethnic differentials in attainment and exclusion rates, racial harassment or the support provided for pupils who have English as an additional language are rarely reported to teachers, parents and governors. From the HMI and contracted inspectors we learn something of the OFSTED culture and how both past and present frameworks, although apparently robust, frequently fail to deliver on race equality. Headteachers and LEA officers in three contrasting local authorities suggest ways in which the school inspection process might be improved so as to contribute effectively to the realisation of racial justice. This report is essential reading for teachers, governors, researchers and policy makers, and all who are concerned with improving standards and achieving race equality in education.