<p>This article examines the challenges, limitations, and opportunities of civic and democracy education in schools in the context of social and technological change. Building on theoretical frameworks of democratic pedagogy, it discusses key models of democracy competence, conceptualized as a multidimensional construct comprising five dimensions: cognitive democracy competence, democratic mindset, goal-oriented dealing with democracy, judgment and media literacy, and related interpersonal abilities. Particular emphasis is placed on the growing relevance of media literacy and critical judgment in the context of media disinformation, social media echo chambers, and AI manipulation. Furthermore, dispositional traits such as empathy and diversity acceptance are identified as crucial psychological foundations of democracy competence that significantly influence its development. The paper highlights the tension between normative educational ideals and the institutional realities of schools, critically reflecting on the notion of a grassroots democratic school. It concludes by arguing that democracy education must be understood as a long-term, evidence-based societal endeavor rather than an isolated pedagogical task. It is made clear that democracy education in schools cannot be achieved through curricular requirements and subject teaching alone. Rather, it must be understood as a holistic concept that encompasses school organizational culture, opportunities for participation, the teaching of values, and projects in equal measure.</p>