Abstract Background To promote health equity, nursing schools must foster student diversity and develop future nurses’ abilities to care for patients from different backgrounds. Although academic experiences play an essential role in promoting multiculturalism, in Israel, where the Jewish-Arab divide is deep and central, this could be challenging. This study examined the attitudes of Israeli Jewish and Arab nursing students concerning their interactions across group lines. Methods In December 2022, 362 undergraduate students completed a survey on the association between cultural intelligence (CQ), satisfaction with the college’s support, and intergroup social interaction. Results The findings revealed that (1) Arab students (minority group) demonstrated higher CQ, especially regarding awareness of cultural differences and motivation for intercultural encounters; (2) Arab students perceived the intergroup encounter with Jewish students as closer and warmer than Jewish students; (3) Arab students’ satisfaction with the college’s support was higher than that of Jewish students; (4) Structural Equation Modeling revealed that (χ2/df=1.61, CFI=.970, TLI=.955, NFI=.927, RMSEA=.041) the support provided by the educational academic setting serves as a primary explanatory factor in the association between CQ and social distance. Conclusions Educational institutions should ensure their students feel supported to facilitate closer social interactions. This emphasizes the importance of proactive measures to encourage diversity and cultural competence in nursing education. Such efforts may positively impact the students’ mental health and enhance patient care. Key messages • To foster student social interaction in divided societies, academia must ensure a high sense of support. • Proactive nursing education promoting diversity and cultural competence may benefit student mental health and patient care.