Ethnicity and social class are two of the main axes stratifying life chances in developed societies. Nevertheless, knowledge of the integration of ethnic minorities into the pattern of class reproduction remains incipient as evidence stems mostly from studies concentrating on specific ethnicities or single host countries. This article advances this knowledge by providing a comparative perspective on the intergenerational occupational mobility of second-generation immigrants and the majority population across 26 European countries. Drawing on pooled data from the European Social Survey (2004–2018), the article demonstrates that ethnic penalties arise for employment and occupational mobility in many countries, however, with crucial differences across and—to a smaller extent—within major country groups. Across countries, ethnic barriers for the second generation are connected to their social integration in the host society and the composition of the first migrant generation, emphasizing the importance of familial and social support for social advancement. By contrast, I detect no link between anti-immigration norms and ethnic penalties, and only mixed evidence for the role of integration policy. The article concludes that ‘ethnicity matters’ in many European societies, even if ethnic cleavages vary according to the composition of migrant populations and the context in the host society.