Intercultural competence in foreign language teaching has gained importance in recent times. Although current work has highlighted the advantages of content and language integrated learning (CLIL) for intercultural development, little is known about its potential for teaching literature in secondary schools. Treating literature itself as an art form, the aim of this article is to formulate research-based design principles for an integrated intercultural literary pedagogy (IILP) that may foster intercultural competence through arts integration in foreign language classes. This article reports on the process of evaluating IILP-based pilot lesson materials in pre-university education in the Netherlands. Educational design research was applied as a method that encompasses the systematic study of designing, developing, and evaluating educational interventions through an iterative process of evaluation with stakeholders. Three iterations of formative evaluation were conducted, with additions to the tentative design principles following each of the first two iterations. The process resulted in a set of four refined principles. Results also illustrated the effectiveness of IILP-based lesson materials for intercultural competence. Although participating students encountered some difficulties relating to the functionality of the design, the students appreciated its social relevance and reported that the processing of literary texts through dialogic tasks with peers in the target language fostered intercultural language learning.