This article critically explores a new institutional preschool arena which has the aim of teaching children whose first language is not Swedish the majority language before they start school. In addition to throwing light on socio-historical conditions which lead to establishment of these language preschools, the article focuses upon issues related to multilingualism and learning in everyday institutional settings. Analysis of empirical data from the late 1990s is presented in the form of an ethnographic day. We identify and discuss a theoretical and methodological tension between language as a cultural tool and the use of physical artefacts and tools in language focused activities to «teach» the majority language. The need for understanding all school settings as «language arenas» and exploring the «doing of multilingualism» are important, it is argued, in discussions regarding diversity and democracy.