I propose in this article to examine concept of ethnic diversity, emergence of differing value systems, and their impact on educational process. I will examine how differing value systems are derived, how they contribute to ethnic diversity, and how significant they are to educational process. Lawrence Kohlberg, late of Harvard University, was foremost American theoretician of development of morality and values in human society. He based his research on theoretical formulations of Jean Piaget, whose pioneering works-particularly The Moral Judgement of Child (1965)-delineated progressive stages in child's development of moral reasoning. Kohlberg's research in United States and several foreign countries led him to conclusion that cognitivestructural development of moral reasoning was universal, and that it proceeded through six stages which were sequential and invariant. In agreement with Piaget, Kohlberg believed that the progression of children's [moral] development reflects evolution of societies from forced conformity, to differentiation, diminished supervision, autonomy, and cooperation (Cortese, 1990, p. 38). Kohlberg, in his own work, developed six stages of moral development with sixth and highest stage being principled reasoning leading to human rights and justice.