The reality of ethnic and cultural diversity in the classroom today is a massive challenge for teachers, especially prospective teachers. The teacher education program is vital in educating prospective teachers with culturally responsive pedagogy and teaching students from various ethnic and cultural backgrounds. A school environment consisting of students from various ethnic and cultural backgrounds requires teachers to meet their needs. Teachers must be culturally competent to respond effectively in terms of diversity in their classrooms and prepare their students to live and work in a global society. Preparing prospective teachers for this role is not an easy task and what makes it more difficult is that the diversity of teachers does not always match the diversity of students in schools. This paper will discuss cultural competency among prospective teachers and related theories regarding this issue. Teachers and prospective teachers should show professional competencies that will enable them to work effectively, respectfully, and ethically with students from diverse ethnic and cultural backgrounds.