Compared to other major players in the global market of international education, internationalisation of higher education has only recently become a relevant topic in Portugal. In line with the worldwide increase of international students, Portuguese universities are also experiencing a growing in-flow of students willing to obtain a foreign tertiary degree. Anchored in international students' perceptions, this paper aims to understand how Portuguese universities deal with the increased diversity of their student bodies. The data result from an in-depth qualitative approach guided by the methodological assumptions of narrative inquiry and are analysed in the light of theories of multiculturalism. The findings give an account of numerous weaknesses in the way Portuguese universities tackle diversity, suggesting that institutional structures may reinforce assimilationist and deficit views of international students. Finally, considering that universities from other 'catch-up' countries may be confronted with similar issues, some empirically based recommendations are offered.