Diversity has increasingly emerged as the core focus of many studies concerning factors impacting on social cohesion. Various scholars have concluded that diversity is detrimental to cohesion. Most of this research, however, draws generalisations based upon quantitative data and fails to account for the impact of inequality, segregation and discrimination, and their interconnectedness to diversity. This research provides an in-depth qualitative analysis of the perceptions of inhabitants of a diverse Toronto neighbourhood regarding formal and informal interactions, common values and attachment. The findings suggest that the internalisation of gendered and class-based racism by inhabitants plays a crucial role in shaping perceptions and interactions.