Books found in the library of an Islamic private school promoted extremism, inspectors found.
Ofsted rated boys' school Jamia Islamia Birmingham in Sparkbrook "inadequate" after visiting last month and finding books that "promoted support for an Islamic State".
The materials were "actively undermining fundamental British values", the regulator said.
The BBC has contacted the school for comment.
Inspectors said school leaders told them they were "unaware of the existence of these texts" though they were found in the library and "stamped with the school's name".
One book set out a series of aims which included "To help the Taliban government in the accomplishment of enforcement of Shari'ah in Afghanistan" and "To struggle for the creation of Islamic states in which the Islamic canons will enforced practically [sic]".
On the front page of the book, the watchdog said, were the words: "Don't make the Jews and the Christians your friends".
Other books "contained misogynistic messages" and condoned using the cane "to the necessary extent" as well as "actively promoted intolerance and discrimination" inspectors found.
All 132 school pupils have daily access to the library, Ofsted said.
There are also no pupils with special educational needs or disabilities at the school because its "admissions policy excludes them".
Ofsted said that was "unlawful" and "amounts to direct discrimination".
"Leaders are not preparing pupils for life in modern Britain.
"These materials are actively undermining fundamental British values and are not compliant with the Equality Act 2010," inspectors concluded.
The school's outdoor space was also deemed as "dangerous", "poorly maintained" and in some areas, "strewn with rubbish" and "filthy".
However, inspectors said the school ensured staff "appointed to work in the school are suitable to work with children".
The school had been rated as "requiring improvement" in 2017.
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