Since humanity entered the 20th century, diversity has become a key feature that manifests itself in all aspects of society. As a venue for people and ideas to meet, universities face ever-increasing challenges in fulfilling their cultural mission. With unprecedented human connectivity, cultural competence is more than a goal. It has become an essential skill for students and a key concern for policymakers and practitioners across the world. Considering the strengths and weaknesses of current approaches to cultural competence education, this article aims to elucidate the significance of the notion of cultural self-awareness proposed by Fei Xiaotong, China’s premier social anthropologist. It explores how Fei’s insights can facilitate universities to rethink their conception and delivery of cultural competence education. By challenging the tendency for cultural competence education to be segregated among a range of disciplines and moving it to the core of the university’s curricular offerings, the article promises an approach whereby all students, regardless of their disciplinary backgrounds, can benefit from the full development of their cultural capability, as can the institution, wider community, and society as a whole.