This paper outlines a conceptual framework for understanding individual development as it relates to the larger issue of intercultural competence and prejudice reduction. A hierarchical model of the multidimensional self-concept is presented in which self-concept encompasses academic, physical, social, and cultural identities. The essence of the cultural self is the affirmation of certain values held by one's cultural group or subgroup. Critical reflection on these values is central to the development of the cultural self. Based on this identity formation framework and on the contact hypothesis (that prejudicial attitudes develop through lack of intergroup contact), a program model is described that uses adventure education to accomplish multicultural education objectives. The multicultural adventure program has the two objectives of increasing awareness of one's own personal identity and creating positive regard for others through interpersonal encounter and community formation. Key program components are a diverse group of participants, challenge or risk, shared cooperative tasks, supportive context, dialogue, and reflection. These components foster self-discovery, self-disclosure, identity formation, and community formation, which in turn lead to intercultural dialogue and increased tolerance and understanding. Suggestions are offered for research based on this program model. (SV)