This article examines socio-economic inequality in Fiji and finds that, contrary to oft-repeated claims, inequality between Fiji"s major ethnic groups (inter-ethnic inequality) is less significant than inequality within each ethnic group (intra-ethnic inequality). In spite of this reality, inter-group inequality and affirmative action policies have remained central features of state policy in Fiji. This article suggests that Fiji's experience has three implications for the growing literature on the relationship between inequality and conflict. First, examining average inequality between groups can be misleading. Secondly, a key to understanding the relationship between ethnic and economic cleavages in post-colonial plural societies, such as Fiji, is in the interaction between intra-group and inter-group inequality. Thirdly, there does not seem to be a straightforward relationship between actual levels of inequality, perceptions of inequality, and the prominence given to inequality in ethno-nationalist discourse. In Fiji's case, the strategic deployment of inter-group inequality has served, and continues to serve, the material and discursive interests of some political elites. As a result, the intersection between ethnicity, inequality and political rivalry in contemporary Fiji has been the source of much conflict and, importantly, may offer a nexus on which attempts at conflict resolution should focus.