Multiculturalism is a hotly debated issue in today's global arena. Much of the controversy arises due to different understandings of the term in public and political discourse. We argue that multiculturalism has three core components-diversity, ideology, and policy-and that heterogeneous cultural groups in multicultural societies are ultimately seeking social justice, but in different ways. Moving beyond the broad social science research to the influences and impacts of multiculturalism within psychological studies, we introduce the concept of normative multiculturalism and propose an integrative framework, presenting multiculturalism as a contextual variable and examining its impact in terms of intergroup relations and subjective well-being. We also consider how multiculturalism at the societal level can be differentially experienced by immigrants and members of the receiving community. Finally, we discuss strategies for maximizing the benefits and minimizing the risks of multiculturalism, reconciling differing justice conceptions, and enhancing positive outcomes for the wider society.