The authors introduce the concept of intercultural dialogue and how it has been utilized as a policy by the Council of Europe and the European Union since the early 2000s. First, we explore intercultural dialogue's relation to and differences from other concepts commonly used to describe different stances in the governance of diversity, ranging from assimilation to integration and from multiculturalism to interculturalism. These different conceptual stances are contextualized by exploring the recent transformations in Europe and their impact on the political aims, goals, and discourses of the Council of Europe and the European Union. Second, we review the previous research on the concept of intercultural dialogue and discuss the criticism of the concept and its meaning and uses in policy discourses.