This study was intended to explore how the perceptions of teachers affect multicultural education (MCE) in diversified classrooms at Hosanna College of Education. A descriptive textual narration with a qualitative case study and purposive sampling research design were employed in this study. Semi-structured interviews and document analysis were used to collect data. The respondents were teachers at Hosanna College of Education. The findings confirmed that the perceptions of teachers were positive toward the teaching of a diverse student population. This is to say that it was evident that teachers felt a desire to provide experiences for their students to help them understand cultural diversity. Inevitably, the study acknowledged that MCE is crucial for nation-wide integration through peace building and sustaining progressive development. However, teachers had no sufficient skills and motivation to investigate studies to encourage and promote MCE because of the reluctant commitment of the College administration. Due to the absence of a strategic plan and a lack of purposeful preparation and content selection for the modular curriculum, the dimensions of MCE were not applied and incorporated into the curriculum as required. As MCE and diversity are not yet meaningfully implemented, it is recommended that teachers, regional education bureaus, policymakers, and the MoE should play a decisive role in efficiently enhancing diversity and tackle the acute problems related to MCE.