Diversity is a symbol of life everywhere including educational settings. The present study was aimed to find out the benefits and challenges for inclusion of diversity in higher education. It was a qualitative study, and document analysis was used as method of inquiry .The population comprises selected documents related to cultural diversity in higher education. Theoretical sampling was used as sampling method. It was found that there were many advantages of diversity including students satisfaction and inter and intra-cultural acceptance. It was also found that the biggest challenge for diversity its acceptance. The biggest challenges are its acceptance and taking it as a burden. It was recommended that there is a need for acceptance of Diversity at all levels and inclusion of multicultural education in teacher education program.