This article aims at analysing inter-cultural learning dynamics on the ground. For this purpose, I investigate dynamics of learning from cultural diversity in European Union-financed transnational projects on employment and vocational training. Taking into account literature on new modes of governance and policy learning, I propose first a framework for the study of learning in a context of cultural diversity. The empirical part of this article serves to illustrate under which circumstances flexible modes of governance (such as the EUprogrammes under analysis) lead to different types of learning. In cases of epistemic learning, project managers aimed at the transfer of one-size-fits all solutions and thus, cultural diversity appeared as an obstacle. Flexible governance arrangements in inter-cultural contexts also led to reflective learning (learning from diversity) and ultimately to innovation and empowerment. The understanding of learning from diversity required an in-depth qualitative analysis. Empirical evidence is drawn from document analysis and in-depth semi-structured interviews in France and the Netherlands.