Many authors have written about the importance of ensuring that psychology students and counseling trainees gain multicultural competence but have also expressed dismay about the slow progress or resistance of institutions, faculty, and students to implementing adequate educational programs. Initiating and sustaining effective training programs present significant challenges despite the fact that there is general consensus about the importance of increasing students' awareness of diversity, different world-views, racial and cultural differences, social oppression, prejudice, and racism. Although the conundrums associated with developing and sustaining diversity education experiences are sometimes daunting, hopeful signs about the outcomes of multicultural competence training are emerging. A major purpose of this chapter is to discuss challenges and strategies for enhancing teaching about diversity issues. This chapter in particular discusses four major types of challenges and strategies for transforming the curriculum. This discussion is followed by a case illustration of the application of critical pedagogical principles in a specialized setting: a graduate seminar. Whenever possible, the authors weave information from relevant research into their discussion of issues, challenges, and rewards.