In a shrinking world where events across the globe become relevant for the lives of masses of people regardless of the distances that divide them, some serious issues have arisen which have particular significance for education policies and practice. Too many children are growing up against a backdrop of polarised views and attitudes which is a cause for concern in many countries where societies are characterized by racial, cultural and religious diversity. This article explores some critical concepts that are pertinent to contemporary Australia and uses research findings and content analysis to problematize the issue. It argues that there is clear evidence that the health and wellbeing of children and young people is being affected by exposure to prejudicial attitudes which can be linked to the diversity that has become a sustaining feature of many contemporary societies and it has had serious consequences for their identity and sense of belonging. It proposes that one way of addressing these issues is through education that addresses the relational dimension of students' lives which is expressed through their connectedness to all others, that is, their spiritual natures. Finally, it identifies some features of such an educational system.