This case study examined the reactions of local students to the diversity in student population. Specifically, it investigated how the local students' intercultural sensitivity to the international students is interrelated with their perception of the English-medium instruction (EMI) policy. The quantitative and qualitative analyses of the questionnaire responses of 213 college students and the subsequent interviews with 15 students revealed a lack of intercultural sensitivity which was correlated with their perception of EMI. The findings indicated that the local students' different perceptions of the policy interplayed, directly and indirectly, with their sensitivity to the cultures of international students. The implications of these findings are discussed in terms of cultivating intercultural sensitivity in an English as a lingua franca context.