Discourses, historical memories and traumas that emerged from the processes of Croatian state and nation formation, war and transition towards peace marked tectonic changes in status and relationships between Croat and Serb communities. Even sixteen years after the war has ended, stereotyping, absence of crossgroup friendships and lack of intergroup interaction highlights the divide between the two communities, particularly in school contexts. This study seeks to explore how contested historical discourses are mediated and reconstructed at the grassroots level through interaction in school communities (by which I mean students, teachers and parents) in Eastern Slavonia (Croatia), how these processes influence youth’s perceptions about each other and what is the role of teachers, parents and peers in this process. The purpose of this case study is to learn what practices can be used to contribute and promote interethnic understanding and tolerance as well as prevention of future violence in postconflict Croatia. This study will build on the existing knowledge and provide new insights on the following: (1) how historical events and traumas impact people’s perceptions and attitudes and what is the role of history teaching (Rouhana & Bar-Tal, 1998; Stradling, 2001); (2) how trauma experienced by groups and individuals is perpetuated through narratives (Volkan, 1997); (3) how meanings about history are shaped through interaction (Tilly, 1999; Wills, 1994) and (4) what role education plays in building tolerance and peace in multiethnic societies (Deutsch, 1993; Harris, 1996; Irwin, 1991; Johnson & Johnson, 1991). The researcher will use semi-structured interviews, focus group discussions and document reviews to examine and compare the perceptions and relationships in Eastern Slavonia’s school communities.