War conflict of 1990’s, Erdut Agreement and the process of peaceful reintegration of Croatian Podunav-ijehas divided community of Vukovar into Croats and Serbs. The ethnic divide has an institutional character in relation to the educational system. Intercultural school Dunav was supposed to represent institutionalization of education for intercultural dialog. Nine interviews have been conducted with individuals who have participated in the political and/or operational component of the project on local and state level, during May 2019. It was reported that the education models of national minorities were successful, however it was also shown that there is room for improvement regarding realization, on one side of model B and C, and on the other regarding the realization of Serbian minority’s legal rights in relation to management of schools and employment. There are two perspectives with respect to the educational system in Vukovar: minority and segregational, similarly there are two perspectives of intercultural school Dunav: ethnocentric and nonrelativistic. Reasons why the project failed is because of tehnical and legal nature and idealization of the current educational model. Prerequisites for educational model like that of intercultural school Dunav are foremost of political nature, and of two perspectives – intercultural and model A upgrade. This work presents the contextual differences between Vukovar and Croatia in comparison to west European intercultural education which emphasizes the economy system and the need for change in political discourse. It was found that there is a variety of possible alternative forms of education. However, even here it comes to diversification of ethnocentric and entorelativisticperpectives that are mutually excluding, this points to the need for dialogue of Croatian and Serbianpolitical representatives on a national and local level which would enable progress in education for intercultural dialogue.