This article examines the cultural and social dynamics of a multi-ethnic medieval town. Taking the lower town of Tallinn as a case study, this paper identifies the major urban ethnic groups living in the town and discusses their co-existence, self-definition, and processes of categorization. It explores ambiguities arising from daily interactions in the shared physical landscape of the town, such as material exchanges, and the development of new technological solutions, and the simultaneous insistence on maintenance of sharp inter-group boundaries. As material culture plays a significant role in the negotiation of identities and in visualizing sameness and difference, emphasis is placed on the ways objects were used in the daily lives of Tallinn's multi-ethnic communities.