The lack of cultural diversity integration in South Indian schools hinders students' understanding and appreciation of their diverse society. Limited teacher training and insufficient resources further exacerbate this issue. Addressing these challenges is crucial to fostering an inclusive and harmonious learning environment that promotes cross-cultural understanding and combats stereotypes and prejudices. This research aims to investigate the impact of current cultural diversity awareness in schools in South India. In recent years, educational institutions in South India have experienced an increasing presence of students from diverse cultural backgrounds. Understanding the effects of this cultural diversity on overall learning environment, teachers and students is essential for promoting inclusive practices and fostering social integration. Therefore, this study employs a comprehensive mixed-methods approach, integrating qualitative and quantitative methodologies, to examine the implications of cultural diversity awareness in schools and its influence on various stakeholders. The qualitative phase of the research involves focus group discussions and in-depth interviews with school administrators, teachers, students and parents. These interviews aim to capture diverse perspectives and experiences related to cultural diversity within the school setting. Through thematic analysis, emerging themes regarding the impact of cultural diversity awareness on students' academic performance, social development, and cultural competence will be identified. Additionally, the quantitative phase of the research entails surveys distributed among a representative sample of students and teachers. These surveys assess the level of cultural diversity awareness and its perceived impact on classroom dynamics, intercultural interactions and educational outcomes. Statistical analysis is conducted to examine correlations and identify significant associations between cultural diversity awareness and the variables under investigation. This study’s findings contribute to the existing literature on cultural diversity in educational settings, particularly in South India. By exploring the implications of cultural diversity awareness, this research seeks to provide insights into the positive outcomes and challenges associated with diverse school environments. The study outcomes inform educational policies and practices, facilitating the implementation of effective strategies to promote inclusive education and foster social integration among students from different cultural backgrounds.