This paper presents the results of a qualitative case study examining Muslim students’ ways of perceiving and dealing with difference. The study is motivated by the need, expressed in previous literature, to achieve more elaborate comprehension of the relation between tolerance and religiosity. Deeper understanding of these dynamics is pursued by concentrating on one specific group and context—Muslim youngsters in Finland. The students’ negotiations between different cultural and ideological sources of understanding difference and tolerance will be elaborated and discussed. These negotiations reflect the special challenges encountered when dealing with religious difference.