This study examines the intercultural competence of pre‐service teachers and ways to prepare them for responding to the needs of diverse student populations. In this study, pre‐service teachers provided critical incidents to describe experiences of meaningful events in their on‐campus and field‐placement learning related to intercultural competence. Data were collected through focus‐group interviews and written questionnaires. Findings indicate pre‐service teachers’ multiple and sometimes contradictory understandings of diversity, the importance of self‐examination and reflection in the process of intercultural inquiry, and a disconnection between theory and practice. Results demonstrate the positioning of diversity within the ‘other’ in contrast to approaching diversity as learning about self and others. Implications for supporting students to explore diversity through reflective practice during pre‐service education are also discussed.