The purpose of this study was to determine Ethiopian teacher trainees' level of cultural intelligence and its association with demographic variables (gender and urban-rural dimension) within the context of intranational diversity. It was also aimed at determining the relationship between CQ and the academic self-efficacy of the participants. A quantitative approach was employed. In the study, 167 teacher trainees were randomly selected from Arba Minch College of Education. Data were collected through CQ and academic self-efficacy scales. The findings revealed that the majority of the trainees have above-average levels of total CQ (Mean = 66.05) and the four dimensions. It was also found that demographic variables included do not affect CQ levels. A positive, significant, and weak correlation is found between CQ and academic self-efficacy (r = 0.23). It is suggested that college instructors and management provide teacher trainees with cross-cultural experience, cultural intelligence training, and education to enhance CQ levels further.