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Tracking the settlement of culturally and linguistically diverse (CALD) populations serves as the foundation for population projection, urban planning, and policy making to achieve social justice, equity, and multicultural harmony. Drawing on census data in 2001, 2006, 2011, 2016 and 2021, our study contributes an Australian nationwide time-series study of the settlement of CALD populations at a fine neighbourhood level, enabling long-term tracking of changing settlement patterns and residential diversity and revealing potential drivers for such changes. Following segmented assimilation theory, we examine whether the CALD populations with higher education levels, higher socioeconomic status and better language skills may tend to partially move out and partially retain their ethnic concentrations, resulting in assimilation that occurs segmentally across urban fabrics. We find that both existing CALD communities and the formation of new CALD concentrations in peri-urban regions exhibit segmented assimilation over time. We also find the settlement patterns of CALD populations in urban areas are more diverse than in rural areas in most states/territories. Our study provides spatially explicit evidence with far-reaching policy implications for migration, place-based health, population and urban planning. • It contributes an Australian nationwide time-series study of the settlement of CALD populations. • The settlement changes of CALD populations exhibit segmented assimilation over time. • Early CALD communities and new CALD concentrations in peri-urban regions concurrently exist. • Their settlement patterns in urban areas are more diverse than in rural areas in most states. • Speaking good English and high education levels play important roles in driving settlement shift. [ABSTRACT FROM AUTHOR]