North Macedonia’s two main ethnic groups, the Albanians and Macedonians, have experienced increasing segregation in education, though recent political shifts have made social cohesion a priority, which could replace decades of segregationist policies and break down a damaging cycle of segregation. Using a qualitative approach, I examine the complex relationship between policies, schools, and individuals through analysing 18 years of education policies, interviews/focus groups with 30 participants, and four years living and working in segregated communities. To explore how educational policies, institutions, and practices perpetuate ethnic segregation in North Macedonia, and how growing up in a divided society shapes individuals’ conceptions of themselves and other predominant ethnic groups, I employ contact theory and critical policy analysis. I find that as students grow up in divided schools and communities, their conceptions of the self and of people from other ethnic groups are constituted by these experiences of segregation. While the nation’s education policies currently include more initiatives for integrated education, these have yet to be implemented satisfactorily, meaning that public schools could teach inclusion and serve as a mechanism for dispelling negative stereotypes, but to do so requires a reconceptualization of ethnic difference and a cohesive vision of national identity.