This presentation offers empirical insights into identity conflicts and experiences of discrimination among Muslim students and teachers within the context of Islamic Religious Education (IRE) in North Rhine-Westphalia (NRW), Germany. Drawing on a mixed-methods evaluation the study investigates four dimensions: student religious identity development, teacher self-reflection, subject-specific implementation, and school culture. Quantitative and qualitative data were collected from various stakeholders, including students, teachers, school leaders, and parents. The findings highlight how perceptions of discrimination—both individual and perceived—interact with factors such as entitativity, social identity, and trust in teachers. Statistical analyses demonstrate that higher grade levels correlate with increased religious maturity, while exposure to polarizing discourses—especially through media—contributes to identity tensions. The study further explores how Islamism and perceived discrimination can influence students' worldview and sense of belonging. The presentation discusses implications for religious education, emphasizing the role of IRE as a space for critical reflection, pluralistic identity formation, and the development of interreligious competencies. It advocates for teacher training in intercultural sensitivity and the creation of inclusive school environments that promote recognition and participation.