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The purpose of the study is to investigate how teachers in year F-3 work and reason around differentiating their teaching in the Swedish subject in an inclusive way. The collection of empirical data has been done through semi-structured interviews, and through observations of teaching and classroom environment. Informants who participated in the study are seven qualified teachers in year F-3, who work in two different schools. We start from the socio-cultural perspective in the analysis of the results. The results show that the teachers in the study work with differentiation in the Swedish subject using different approaches and working methods. Differentiation enables all students to be  included in the classroom. The study highlights certain problems with differentiation. Despite the fact that teachers in year F-3 have several methods, different levels of knowledge in the tasks and several ways of working, and that they see the variations in the classroom as assets, they still encounter obstacles and challenges when they have to differentiate their teaching in the Swedish subject. These include lack of time, the size of the student group, variation in knowledge levels and students' different receptivity and abilities.