In this study, it was hypothesized that collaborative learning in international higher education contributes to the development of intercultural competence. Two hundred fifty-two students of an International Business and Management Study program of a Dutch university participated in two surveys on collaboration in a group-learning activity and one survey on their development of intercultural competence. In addition, three groups of four to six students took part in focus group interviews. The results indicated that when students perceive that the group process improves, the quality of the collaboration in terms of verbal interaction and equal contribution will also improve. Furthermore, the results revealed that a higher perceived quality of the collaboration relates to an increasing development of intercultural competence. The findings are discussed and related to implications for the use of group-learning activities in international higher education.