Contrary to many Israelis’ self-perceptions, the Israeli population has grown significantly and is similar to modest-sized European nations. Significant numbers of recent Russian-origin immigrants are classified as ‘Jews’ by the state but not by the rabbinate and, consequently, face problems of marriage and other bureaucratic-controlled situations. Some second- and third-generation Ethiopian Israelis have been upwardly mobile while racism continues. The number of foreign workers and African refugee seekers has grown even as they are exploited. In contrast, the local gay communities are more accepted among the secular majority. Issues regarding a multicultural future are discussed.