The present paper delves into how symbolic boundaries in a school that is undergoing a desegregation process come to shape social boundaries of 'we-ness' and 'otherness'. The theoretical framework of the study starts from an interest in analysing whether symbolic and social boundaries emerge in new encounters during a desegregation process and whether this may produce different modes of incorporation. Peer interactions and schoolwork were observed and interviews with school staff were conducted to investigate school desegregation implementation in a large Swedish town. The town we investigated has formulated a desegregation policy that, over time, has not resulted in desegregation in practice. The results highlight that schools without a coherent pedagogy, idea, or practice for social inclusion face challenges. These challenges, in turn, promote internal micro-segregation and non-incorporation of minority students, despite intentions to promote inclusion.