Far-right movements and parties have become a visible part of the political landscape in Germany and England. This article examines the processes of racialisation in local spaces, councils, and urban governance, contrasting the two different democracies. The study aims to contribute to research on the populist turn in local politics. Using an exploratory case study approach, it focuses on mechanisms and local conditions that shape the articulation and dissemination of anti-Muslim discourse and practice in the reciprocal dynamics between groups of the (heterogeneous) “radicalised” mainstream and the normalisation of the far right. The interviews with Muslim/non-Muslim members of civil society and local politicians show that the normalisation of the far right occurs through both the polarisation and instrumentalisation of seemingly neutral policies in local councils as well as through a shift to the right in the statements of local politicians. However, the study underlines the influence of anti-Muslim racism in everyday urban politics and its impact on local communities and democracy. Thus, institutional racism in political recruitment in democratic parties, the preservation of particular political interests, or a lack of transparency in political decision-making can affirm far-right normalisation. The conclusions emphasise the crucial role of civil society in promoting democratic resilience.