Modernisation, globalisation, neoliberalism and the increase in immigration have morphed into xenophobia, as they have resulted in structures that increased inequalities and competition for scarce resources, although there are other factors such as the global recession that is deepening inequalities and social classes. In South Africa, xenophobia is a topical matter, with chronic violent outbursts. The study addresses the gap in knowledge in the relationship between language and xenophobia. Language is central to human communication and to human socialisation and is not neutral but is embedded in ideologies that favour specific interest groups. The neoliberal ideology compels people as human capital to develop linguistic capital. The paradox is that globalisation transcends the national to transnational, while at the same time being conscious of the local or the indigenous language. Globalisation promotes hybridity and diversity, while at the same time promoting homogeneity or Westernisation, which is contrary to the nationalist ideology to protect the cultural heritage of the locals. This thesis is guided by a range of classical and more contemporary development theories. It includes the use of Marxist theory with regard to ownership and unequal distribution of resources. The culture of violence that manifests in xenophobia in South Africa can also be related to the violence of the colonial and apartheid periods. This thesis is also guided by the post-colonial theory. It also looks at theories of modernity and of globalisation, suggesting that a truly ‘modern’ society should be transformed in all spheres and should value multifaceted human well-being (and not only in terms of economic ‘growth’). A primary objective of this study is to explore the role of language in social institutions such as education in order to understand how matters of language exacerbate xenophobia and to document the challenges related to language that ‘foreigners’ from other parts of Africa face in South Africa. Questions asked include whether they can survive/thrive without knowledge of local languages, whether they are victims of crime because they cannot speak the local languages and whether and how they are being assimilated into South African society. This research therefore, recommends that language planning in South Africa should maintain a balance in the use of the English language as a lingua franca and the use of the indigenous languages so as to avoid the language endangerment of the indigenous languages and monolingualism, as well as subtractive bilingualism. This research is against institutional discrimination of foreigners by use of language as a gate keeper or an entry fee into the higher domains. The results of this research lead to the recommendation on language planning that leads to economic opportunity, higher economic productivity, educational development, enrichment in the sense of creativity innovation, cognitive flexibility, and more effective social integration, while restoring citizens’ sense of self-worth and their experience of emotional and social security, and also promoting social integrity and nation-building. Good language planning should be a crucial aspect of development planning. This research contributes to the field of Development Studies in that it analyses the conflicting issues within language and xenophobia in South Africa, while using the complexity theory to restore a modernised society with modern values that are not xenophobic but open to the global society. It also contributes to the politics of culture by keeping a balance between the endogenous culture versus the exogenous culture; a localised culture versus a globalised culture.