The years of early childhood serve as a critical opportunity not only to support the academic, physical, and social-emotional development of young children, but to demonstrate and reinforce America's commitment to diversity, equity, and inclusion. Young children benefit greatly from exposure to racial, ethnic, cultural, and linguistic diversity during this crucial and formative period, yet many existing policies may inadvertently deter classroom diversity and inclusion. Promoting diversity and inclusion within the classroom is a catalyst for meeting developmental milestones and promoting greater social understanding and equity. This brief seeks to address the importance of promoting diverse and inclusive settings by presenting the current state of preschool, highlighting the benefits of preschool diversity, and identifying policies, institutional factors, and initiatives that foster diversity. The brief concludes with a list of policy recommendations designed to support policymakers and leaders in reevaluating current policies to ensure children have access to diverse preschool experiences. [The Educational Alliance's Manny Cantor Center was a collaborator of the brief.]