Economic and technological processes of globalization and the increasing migrations of people in the world undermine dominant national identities. One of the main characteristics of our time is the instability of identities and the continuous invention of new/old identities. Traditions and ethnic identities are deconstructed and reconstructed. Immigrants, first, second and also third generation, participate in the dynamic of identity production. It is as part of this global process of identity production that recently founded multicultural schools in Israel have to be understood. The Kedma, Shevach/Mofet and Bialik multicultural schools provide alternative identities to the prevailing national identity: an emancipatory identity to Mizrahi (Oriental) children, a mixed identity to children of immigrants from the Former Soviet Union and a transnational identity to the children of migrant workers. Rather than facilitating integration into the discriminatory hegemonic national identity, these alternative identities provide new empowering options for young immigrants within Israeli society.