In order to explore the link between multicultural service-learning (MSL) and the development of multicultural competence, a participatory action research paradigm and constructivist grounded theory were used to qualitatively explore the perceptions of multicultural competence development in 30 recreation and leisure studies majors. Major themes focused on student development as a result of MSL and the process by which this development occurred. Students reported increased awareness of their own culture and the cultural background of others, recognized privileges they hold on a variety of cultural factors, and developed an understanding of the process of MSL and the role it plays in developing multicultural competence.