A report has raised concerns that some teachers were not aware how frequently name-calling is being used in schools.
The Ofsted report, based on visits to 56 schools and discussions with around 2,000 pupils and staff, looked at the best ways that schools can prevent and tackle bullying.
It said it was clear that pupils were using derogatory language outside of the classrooms, such as in the playground, although at times it spilled over into lessons.
Name-calling is rife in many schools, but is often dismissed as simply "banter", according to a new Ofsted report into bullying.
It found that pupils are using insults relating to sexuality, intelligence, race, appearance and family circumstances, with some saying it was acceptable if the words were being used between friends.
But while students admit to using language that they know is inappropriate, the report also raises concerns that some teachers were not aware how frequently it was being used.