Religious education and intercultural education are seen by some to be in tension with each other, and by others as two sides of the same coin. The explanations for this unsettled relationship may be found in the different histories of the two fields. Intercultural education has become a cross curricular priority, resulting from rather recent developments marked by cultural complexity, following globalisation and migration processes of the last 50 years or so. Religious education has a long history of being a distinct school subject, much influenced by differing national and religious cultural heritages and which, during the last half century, has begun to address the issues of religious and world view diversity. In several countries today, religious education in the publicly funded school is conceived as non-confessional and deals with a diversity of religions and world views. Religious education may be the subject where socio-cultural differences are most visible and where the challenges of diversity are put to the test. This raises a series of challenges to curriculum designers and teachers in classrooms; the article will address some of them and suggest ways forward for teacher education and school practice.