Theory of mind (ToM) refers to a cognitive ability that enables one to attribute mental states (such as desires, emotions, beliefs) to self and others. In recent years researchers have identified cultural variations in the onset of ToM understanding in collectivist and individualist cultures. However, the findings of cross-cultural studies regarding these variations are inconsistent. The major aim of this innovative research was to investigate differences in the acquisition of ToM in children from a collectivist culture (Pakistan) and an individualist culture (UK). The second aim of the study was to assess the specific association between ToM and social competence in a culturally diverse sample. An additional aim of the study was to investigate the universality of various correlates of ToM such as executive functioning (EF), parenting styles, and maternal mental state talk. The findings of the studies demonstrated a significant delay in the acquisition of ToM in Pakistani children, when compared with Western children from individualist societies. These findings were corroborated by the results of novel cross-cultural study that compared the performance of White British, British Pakistani, and Pakistani children on a ToM scale. White British children outperformed both Pakistani and British Pakistani children on measures of ToM, EF, and social competence. The current findings also provide support for the association of mental state understanding with EF, social competence, parenting styles, and maternal mental state talk. These findings have important implications for the role of general (collectivist vs. individualist cultures) as well as specific cultural practices (such as parenting and education) in the acquisition of mental state understanding.