Historically, education policy making has been interwoven with the nation-building project. However, the centrality of the nation state in education policy making has been constrained by a wide range of new socio-political and economic phenomena that relate to European integration. This article explores the ways in which European education policies are mediated and reframed by national institutions through the case study of the development of intercultural education in Cyprus. It examines: (a) the types of interaction between European and national intercultural policies; (b) the ways in which European intercultural policies are mediated by national institutions; and (c) the impact of this process for the making and implementation of Cypriot policy regarding intercultural education. Intercultural education relates to a wide range of sociocultural, political and economic phenomena, while it is based on values that affirm cultural pluralism. Thus, the aim of this article is to provide a global perspective of intercultural education in a European state (Cyprus) that seeks conflict resolution.