Intercultural competence (IC) has shown to be a critical asset for university graduates to appropriately and effectively perform in work- related settings that have become increasingly more diverse and intercultural. Therefore, it is fundamental to understand what constitutes effective IC development in higher education (HE). Within IC development, a more holistic understanding of IC assessment is needed. Thus, it is essential to comprehend how IC assessments work effectively, and their role in IC development. By reviewing empirical studies on IC development between 2000 and 2022, the particularities of IC assessments concerning administration, methods, and assessed competencies have been examined. Based on 31 papers, this literature review reveals the inconsistency of IC assessments in HE and proposes a holistic approach to IC assessments to bring more clarity to research and practice.