<p>Interdisciplinary Group Work (IGW) is increasingly being adopted in higher education settings to foster interdisciplinary competencies among students. The effectiveness of IGW hinges largely on the quality of student interactions across different disciplines. Understanding how students interact in IGW, along with the role of institutions and educators in facilitating such interaction, is crucial for enhancing interdisciplinary education quality. This study responds to the need for integrated research that considers both individual and environmental factors, employing Expectancy-Value Theory to assess perceived task value and constructing the notion of perceived teacher-initiated diversity climate as an environmental factor. It specifically examines the interactive influence of perceived benefits and costs on interdisciplinary interactions within group work and examines the impacts of perceived teacher-initiated diversity climate in boosting student’s perceptions and interactions in IGW contexts. Data collected from 108 third-year undergraduate students participating in team-based interdisciplinary programs reveals that positive perceptions of diversity significantly enhance interdisciplinary interactions, while perceived costs detract from them. It also shows that the challenges of interdisciplinarity do not substantially diminish students’ willingness to learn from various disciplinary perspectives. Importantly, perceived teacher-initiated diversity climate is related to greater positive perceptions in IGW, thereby improving interdisciplinary interaction. The paper concludes with suggestions for teachers and educational institutions on optimizing interdisciplinary education.</p>