Background: Little research has focused on teaching graduate-level diversity courses, particularly from the faculty standpoint. Such pedagogy calls for unique skills and contains many challenges. Objective: The purpose of the study was to better understand what works and what is needed to support instructors of graduate-level diversity courses, as well as common challenges that these instructors face. Method: Using Charmaz' Constructivist Grounded Theory approach, data from 20 qualitative interviews were analyzed for emergent themes. Results: Four over-arching themes emerged: (a) "Challenges in Teaching the Course," (b) "Impact on the Instructor," (c) "Coping with Course Challenges," and (d) "Feelings about Teaching Multicultural Courses." Conclusion: Findings suggest the unique nature of graduate-level diversity courses, and the need for resources and support for instructors of such courses. Teaching Implications: Teaching diversity courses can take a personal and professional toll on the instructor. University systems should be aware of this and support structures and resources for such teaching.