The purpose of this study is to discover the state of diversity management in university campuses with particular reference to Ethiopia, BahirDar University. For a variety of reasons many higher education institutions struggle to embrace issues of diversity. This study explores some of the strategies higher education institutions employ to manage diversity among students, faculty, and staff at personal, institutional and classroom levels. It starts with a discussion of basic diversity and diversity management mechanisms employed in BahirDar University. The study further examines the experiences of USA and Nigeria. These issues are highlighted through a case study conducted in campus of BahirDar University.