Higher education institutions increasingly seek to promote students' intercultural competence (IC), yet its conceptualization remains a challenge. The first aim of this study was to explore how a purposive sample of n = 77 domestic, undergraduate students at a public university in Germany define IC. The second aim was to assess to what extent such definitions are context-dependent by comparing IC definitions provided by domestic students (with predominantly German nationality and little international experience/exposure) with those provided by n = 130 international, undergraduate students at a private university in Germany (with predominantly non-German nationality and more extensive international experience/exposure). A qualitative content analysis showed that domestic students defined IC mostly in terms of attitudes followed by external outcomes while the opposite was true for the international students. Differences in IC definitions between the two samples are discussed with regard to various contextual factors. Our results suggest that such contextual factors should be considered when designing measures to promote IC development in university students.