Chile constitutes a remarkable demonstration of the inevitable triumph of economic and political liberalism. Since its transition to democracy from authoritarian rule in 1990, Chile has made significant progress in economic development, poverty reduction and democratic consolidation. Today, Chile can look back at last three decades of economic growth, very much in contrast to most other Latin American countries. Their social programmes of providing education, health facility and housing facilities to the poor have resulted in the drastic poverty reduction. All this has been achieved through a unique process of consensus building which provided stability and certainty to both the government and the opposition. In spite of achieving all this, Chile has been going through a phase of continuous students protest against their education system. Although, Chilean education system is ranked higher in quality than that of other countries of the region but the students in protest believe that the present education system has created a lot of segregation in the society which they term as “education apartheid”. This paper will highlight which social groups have benefited and which have not from their education policy and will analyse the shortcomings in the education policies of Chile after the end of dictatorial rule and will try to link it with the rise of first major student movement named “penguin revolution” of 2006. The paper will also discuss the course of students' movement which took a large shape in 2012 and what all it has achieved and where does it stand now.