The concept of intercultural communication has become a focus in English language teaching (ELT) against the backdrop of globalization, as English is now used as a lingua franca (ELF) among people with different first languages (L1s). However, the current linguistic landscape of ELF does not reflect well in ELT practices in which native speakerism ideology persists and curriculum design and teaching materials largely remain oriented to native speakerism. To address this gap, data drawn from a participatory action research were analyzed to discuss students' understanding and reflection of critical intercultural literacy. Several training activities in an adaptive English as a foreign language (EFL) course of intercultural communication that involved reading academic articles related to intercultural literacy were first implemented and two follow-up workshops were conducted with 10 Chinese university students as participants. Data from further interviews and reflective journals from the students in relation to critically evaluate the textbook contents of this course were analyzed using a qualitative content analysis. The results revealed that students acquired a sense of intercultural literacy and that they learnt to challenge textbook content from a critical perspective through the training. This article further addresses the importance of critical pedagogy in teaching linguistic and cultural literacy and concludes that ELT must be conducted from a multilingual and multicultural perspective.