The relative absence of Indigenous and multicultural perspectives in core undergraduate psychology curriculum is said to hamper the preparation of students for engaging with culturally diverse communities. An intercultural unit that includes perspectives on Australia’s history of race relations, Indigenous issues, and migration as the basis from which to research and practise intercultural psychology was introduced into the psychology undergraduate syllabus at Victoria University. This article describes the unit framework, structure, and evaluation of the unit. Content analysis of survey data showed that students appeared to develop greater critical awareness of psychological perspectives on cultural and social diversity. Although many students reported positive learning and an increased awareness of cultural matters, there were also student responses that suggested dissatisfaction or disengagement from what was being taught. These responses are consistent with the dynamics of learning about self and other, and of dominance and subjugation. It is argued that promoting an understanding of psychological phenomena as socially, culturally, and historically embedded is important in preparing students to be culturally safe and respectful mental health practitioners.