This study examines the role of literature in developing intercultural awareness among year 5 pupils within the context of English Language Teaching (ELT) in Sweden. As cultural diversity in classrooms increases, this study explores how literature functions as a medium to comprehend diverse cultural narratives and enhance empathy. Employing a mixed-methods approach, including quantitative questionnaires, qualitative interviews and focus group discussions, the study evaluates both the direct and deeper impacts of multicultural literature on pupils’ intercultural awareness. Key findings indicate that literature’s effectiveness in developing intercultural awareness largely depends on appropriate text selection and its integration into teaching practices. Challenges include teachers’ difficulty in assessing pupils’ intercultural awareness, which hampers the implementation of effective educational strategies. Additionally, the results highlight the varying levels of pupils’ engagement, influenced by their own cultural backgrounds. Pupils with diverse cultural experiences tended to show greater empathy and interest in cultural narratives, whereas those less exposed to cultural diversity were more likely to be disengaged. The findings suggest that targeted selection of literature and strategic curriculum integration are essential for maximising the educational benefits of literature in promoting intercultural awareness. Furthermore, the findings highlight the importance of teacher preparedness in choosing and presenting literature that not only resonates with pupils but also enriches their learning experience, as well as further integrating the literature reading through discussions to improve the development of intercultural awareness.