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Across Europe, urban education systems are struggling with the process of integration of immigrants in schools. The process of inclusion and exclusion in European cities shows many similarities with earlier experiences in U.S. cities. This article explores the most important aspects of this new urban phenomenon and its impact on urban school systems. It clearly shows that ethnic segregation in elementary and secondary schools is widespread in Dutch cities. This ethnic segregation is caused by a combination of residential segregation and parental choice. The article also deals with recent Dutch studies on the effects of segregation. Finally, it treats the question of how schools and authorities, in a long-standing tradition of parental choice, are dealing with this segregation. Given the debate of choice in the United States, the Dutch case offers an ideal opportunity for empirically testing some assumptions in the discussion concerning the relationship between choice and segregation.