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Background and Context: Despite the frequent inclusion of the term ‘diversity’ in health educational policy, ambiguity remains in its usage and implementation. A paucity of high quality research exists on how to best teach and evaluate diversity education in healthcare settings. This PhD aims to first gather the perspectives of key stakeholders on how we can better teach and evaluate diversity education. Secondly, develop an evaluation tool that can be used to measure its effectiveness, thereby providing theoretically informed evidence to guide curriculum development and evaluation. Methods: This PhD has a mixed method design in which a participatory research approach (PRA) was utilised, involving the collaboration of 8 organisations. A total of 94 key-stakeholders across the UK took part in 8 participatory workshops. Using template analysis, a reconstructed relationship-centred care (RCC) model was developed. Based on this model a situational judgment test (SJT) was constructed. This allowed multi-dimensional factors related to diversity to be evaluated. A total of 208 participants participated in the piloting of the SJT, which involved a rigorous process of writing, refining and retesting scenarios. Findings: The findings revealed that diversity education should be focused on the nuances and dynamics of clinical relationships. In particular, the relationship considered the most important to examine with respect to diversity education was the ‘practitioner-self’ relationship. The SJT offered a robust evaluation tool and the scenarios can be tailored to different contexts, further developed and refined for future use. Discussion and Conclusion: The findings provided clarity on how diversity education can be better theoretically informed. The reconstructed RCC model situates diversity within a wider context that should be considered for achieving high quality patient centred care and improving professional practice. In addition, the SJT offers a tangible resource for healthcare educators to begin to evaluate the effectiveness of their diversity education.