Previous research indicates that lesbian, gay, bisexual, transgender, queer plus (LGBTQ+) students feel marginalised and discriminated against in physical education (PE) and that teachers play a crucial role in establishing openness towards sexual and gender diversity in schools. Despite these findings, there is a lack of research that focuses on the topic of sexual and gender diversity in PE from the perspective of PE teachers. The paper addresses this academic void. Based on semi-structured interviews with 13 PE teachers from Germany, we explore the question of how PE teachers perceive sexual and gender diversity in PE and how they reflect on classmates' interactions with LGBTQ + students. The analysis of the interview data is framed by the concept of school climate with regard to sexuality and gender diversity. Our data show that the interviewed teachers have different, partly divergent experiences with sexual and gender diversity in the context of PE. On the one hand, teachers notice that the socially propagated tolerance and openness towards sexual and gender diversity are manifested in the students' interactions with each other, while on the other hand they observe a non-acceptance of certain LGBTQ + students and related problems in PE. The examination of the PE teachers' experiences reveals central, partly overlapping patterns of argumentation with regard to the perception of (non-)acceptance of LGBTQ + students. Overall, it becomes apparent that the conditions of perceived (non-)acceptance of LGBTQ + students are determined situationally and subject-related. At the end of the paper, we discuss our findings in the light of current empirical knowledge.