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Engineering students require global competencies to help prepare them to work in an increasingly culturally diverse, complex and interconnected global economy. To enhance international awareness and cultural sensitivities of undergraduate engineering students, we developed a unique program of virtual engineering teams where students collaborate within international project-based exchanges. Each team comprised students from multiple countries, faculty and engineering firms. Students’ understanding of intercultural competence was assessed before and after the program to determine the impact of our program on their understanding of intercultural values and virtual team collaboration. We found that blending intercultural content with international projects was a successful strategy for helping these students develop intercultural competencies, together with engineering knowledge and experience with virtual team collaborations.