Prejudice is one key factor that ignites social conflict in a diversed community, especially Indonesia. It is a result of the inability of the people to comprehend and implement Bhinneka Tunggal Ika (Unity in Diversity) in their Daily life. Consequently, they consider diversity and difference as an obstacle in this diversed nation. In this paper we propose Community-based Multicultural Education as a mean to induce . We proposed a Community-based Education model because we see that in order to build a multicultural community, people, as the subject, should be involved actively in the process of multicultural-understanding development. Keyword: prejudice, multicuralism, Community-based multicultural education