The main focus of this paper relates to the conceptualizations of human identity and intercultural relations needed for cooperative learning (CL) to occur. At one extreme, some have argued that the relation between different cultures should be conceptualized in terms of incommensurability. At the other extreme, a standardization and unification along with the trend of globalization is supported at the peril of leaving pluralism aside. This paper argues that neither of the two extreme views can provide a satisfactory theoretical basis for CL at the intercultural level. Such a theoretical basis can be sought in providing a compromise between Donald Davidson's principle of charity and Gadamer's view of understanding in terms of fusion of horizons. Consequently, understanding is neither merely an inner nor an outer endeavour; rather it involves both. Cooperative learning in this framework implies that the material for learning is neither in the hands of the learner nor in those of the so-called "teacher". In fact, this material develops an intercultural relation by means of both poles of the relation. CL involves reciprocal support as well as reciprocal critique.