This article makes the normative argument that Catholic schools can and should reject Islamophobia by welcoming Muslim students through the acceptance of full accommodation. It reviews research that could assist Catholic schools to take up Pope Francis’s ‘Fratelli Tutti’ Encyclical Letter call for ‘fraternity and social friendship’ with near and distant ‘strangers’, by adopting acceptance forms of community with Muslim students, and rejecting Islamophobia. Currently, illiberal securalist societies have rendered Muslim students eminently vulnerable to cultural racism and racialisation. Many of them experience schools as culturally incongruent, are subject to everyday cultural racism, and also lack a faith-based education. It defines Islamophobia as cultural racism, with gendered forms of racialisation, examines histories of secularisation and of school markets as contexts exclusionary of Muslims. It reviews research on: how non-denominational and denominational schools, teachers, and peers have contributed to, or rejected, the Islamophobia experienced by Muslims students; how they have moved, or can move, to school-based policies of accommodation based on positive difference; and how their religious education pedagogies do, or may, foster the opening of hearts and minds to the respect as equal of Muslim brothers and sisters.