<p>This study examines the development of intercultural perceptions through project-based cultural exchange activities among Turkish and international university students. While previous research has largely focused on the challenges of international students’ adaptation, limited attention has been given to how intentionally designed interaction-based activities shape mutual cultural perceptions in higher education contexts. Drawing on Intergroup Contact Theory and Deardorff’s Intercultural Competence Model, this study adopts a qualitative case study design to explore intercultural learning as a process. The study was conducted with 18 participants, including Turkish and international students, over an eight-week project involving structured cultural exchange activities. Data were collected through semi-structured interviews, supported by reflection reports and researchers’ field impressions, and analyzed using inductive content analysis. The findings reveal that intercultural learning emerged as an interaction-driven process involving six interrelated themes: cultural awareness, social interaction, perception change, recognition of similarities and differences, intercultural communication, and challenges. The results indicate that meaningful and sustained interaction facilitated the development of empathy, reduced social distance, and transformed cultural perceptions. At the same time, challenges such as language barriers and interpersonal tensions highlight that intercultural interaction is not inherently smooth and requires supportive conditions. The study contributes to the literature by demonstrating that intercultural competence development is not an automatic outcome of cultural diversity but depends on the quality and structure of interaction. It further shows that project-based cultural exchange activities provide an effective pedagogical framework for fostering meaningful intercultural engagement in higher education contexts.</p>