Boyd Hunter and Jerry Schwab analyse recent trends in the engagement of Indigenous people with the Australian education system between 1986 and 2001. Against the backdrop of a Commonwealth government policy emphasis on 'practical reconciliation' since 1996, the analysis shows that while there have been some absolute improvements in Indigenous educational outcomes over the period 1986 to 2001, these gains are less evident when measured relative to non-Indigenous outcomes. The lack of improvement relative to the non-Indigenous population is seen not only in the proportion of the population with post-secondary qualifications, but also in the proportion of Indigenous teenagers staying at school. By any measure the Indigenous population remains severely disadvantaged. Another finding is that for younger age groups the non-Indigenous population has a higher participation rate in post-secondary education than the Indigenous population. On a more positive note, older Indigenous people are actually more likely to be enrolled in a post-secondary course than their non-Indigenous counterparts--probably as a response to the history of disadvantage within the education sector.