This paper analyses a 'critical moment' in the educational trajectories of young indigenous children in Peru: the transition to primary school. It addresses the inequalities in educational services that affect indigenous children, before looking at the micro-level processes that take place in school settings, through a focus on two selected case studies from the Young Lives study of childhood poverty. Using longitudinal information collected in two consecutive years, the case studies show how the children's language and culture are excluded from school premises and their very identity as children and indigenous people is disregarded, negatively affecting their educational performance. © 2011 Elsevier Ltd.