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This study investigates the causal effect of liberal arts education (LAE) in cultivating graduates as active citizens with enhanced competence in diversity and inclusion. Utilizing longitudinal data comprising 2,549 alumni from seven public colleges and universities, this quantitative study examines the association between LAE elements (multidisciplinary curriculum, active pedagogy, extracurricular activities, mentorship, and residential learning) and the development of competencies in diversity and inclusion measured as openness to diversity and pluralistic orientation. To control for selection bias, this study employs inverse propensity score weighting. Empirical evidence highlights LAE’s contribution to fostering open-minded active citizens and underscores the role of higher education in addressing the contemporary challenges of rising conflicts and the need for peace, diversity, and inclusion.