ABSTRACT Integration policies emerged as a critical focus of local policymaking in smaller towns, driven not only by migration trends in these areas, but also by the growing political influence of local radical right parties (RRPs). This trend occurred across various European countries, including Belgium and Italy, raising new questions about the impact on policy formation of locally embedded RRPs and the social and political polarisation dynamics which foster their growth. Despite growing scholarly attention to the role of local actors in shaping integration policies, these dynamics have mostly been studied in large cities. Therefore, this article aims to explore the effects of RRPs’ rise on integration policies in Ninove (Belgium) and Fermo (Italy), two diversifying and deindustrialising medium-sized towns governed by liberal coalitions, but with a strong opposition presence of RRPs. Adopting a comparative perspective, it utilises document analysis of national and local integration policymaking, complemented by 34 interviews with local actors. The results show that RRPs shape local agenda setting and local governing parties respond by creating policy ambiguity around policies targeting migrants. Specifically, they invest in policies that aim to support integration, but make sustained attempts to disguise that migrants are the target population for these policies.