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Racial segregation remains a persistent problem in American schools. This paper examines the ways in which social psychological factors – in particular, individuals’ perceptions of schools with varying demographic characteristics – may contribute to the ongoing structural problem of school segregation. We investigate the effects of school racial composition and several non-racial school characteristics on American parents’ school-enrollment decisions for their children, and how racial stereotypes shape the school-choice process. Data from a survey-based experiment designed by the authors (N = 1,129) are used to test “pure race” (racial composition) and “racial proxy” (school safety, school academic performance, school condition) hypotheses regarding parents’ enrollment preferences. A measure of pro-white stereotype bias is also examined, both alone and in combination with school racial composition (percent black). Logistic regression analyses demonstrate strong support for the “pure race” hypothesis. The proportion of black students in a hypothetical school has a consistent and significant inverse association with the likelihood of parents’ enrolling their child in that school, net of the effects of the included racial proxy measures. In addition, higher levels of pro-white stereotype bias further inhibit enrollment, particularly in schools with higher black proportions. While “racial proxy” factors do have an impact upon the likelihood of enrollment in hypothetical schools, they do not negate the effect of race per se. We discuss the implications of this research for policies aimed at mitigating racial segregation in American schools.