Universities' internationalisation rhetoric suggests that students studying on internationally diverse campuses will automatically engage positively with one another and develop intercultural competence. This study examined the extent to which a cohort of first year UK and non-UK students studying on an internationally diverse campus developed intercultural competence. The Intercultural Development Inventory® (IDI®) and a locally designed survey were used to assess students' intercultural competence and to explore their intercultural experiences over seven months. Students began almost exclusively in lower (ethnocentric) stages of intercultural development and most showed little progress despite reporting relatively high levels of intercultural contact, friends from other cultures and positive experiences. Findings suggest that even positive intercultural experiences do not necessarily lead to the development of intercultural competence and that university policy and practice may need to be enhanced if producing graduates with higher levels of intercultural competence is to become a realised outcome of internationalisation.