The school is often emphasized as the societal institution with a universal mandate for promoting democratic values such as tolerance among the younger generation. This study explores the role of a positive school context for tolerance among Swedish students between 14 and 20 years old, simultaneously taking into account competing explanations such as social networks and personal traits. Results show that factors at the school level are associated with tolerance. However, socioeconomic factors and social networks tend to play a more important role. The study concludes by drawing attention to the role of schools as inclusive communities for students from different ethnical and social backgrounds.