This qualitative study investigated the effectiveness of case-based pedagogy as an instructional tool aimed at increasing cultural awareness and competence in the preparation of 18 pre-service and in-service students enrolled in an Intercultural Education course. Each participant generated a vignette based on an instructional challenge identified and/or a learning challenge experienced in an intercultural educational setting. The instructor-researcher used the case method approach in the analysis of the 18 student-generated vignettes. Using Shulman's (1986) conceptual framework of teacher expertise as the target for investigating the effectiveness of case-based pedagogy as a teacher preparation tool, the study sought to identify aspects of teacher knowledge and teacher thinking about intercultural education and praxis that were facilitated via the use of case-based pedagogy. Interviews, video-taped discussions, pre and post-case discussion reflection papers, and critical incident reports were coded. The results of the correlation and case study analyses indicate a strong influence of case-based pedagogy on teacher knowledge of the variety of ways in which culture shapes us all; teacher capacity to relate theories to personal and professional intercultural experiences; teacher understanding of how cultural factors impact educational contexts; and teachers' abilities to design culturally responsive lessons as well as design curricula that promotes intercultural awareness and competence in multicultural educational settings. (Contains 1 figure.) [This paper was published in: Proceedings of Intercultural Competence Conference August, 2010, Vol. 1, pp. 51-77.]