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The US and German school systems are established in migrant societies and promise equal chances of participation and belonging. And both have to deal with students’ differences. This paper presents findings from a multilevel comparative study emphasizing especially ethnic differentiation. On the institutional level we firstly ask, how both countries produce ethnic differentiation and how this relates to concepts of participation and belonging. On the levels of organization and interaction we secondly examine patterns of ethnic differentiation in different school cultures. The data source are school websites, interviews and classroom observations. The findings on ethnic differentiation in the context of reproducing inequality in the German and the US school system are discussed under theoretical implications of participation and belonging.