Background <p>With the advent of globalization, intercultural sensitivity (ICS) is a vital skill, particularly for medical students. At the Alexandria Faculty of Medicine (AFM), third-year domestic (Egyptian) and international students in the national program have been separated throughout all the years due to logistical challenges. This study aimed to assess the ICS of third-year national program students, identify its correlates, explore multicultural student groups (MCSG) work-related challenges, and evaluate the perceived value of multicultural group work.</p> Methods <p>A cross-sectional study using quota-convenience sampling was conducted among third-year national program medical students at AFM to proportionally represent domestic and international students. Participants completed an online questionnaire covering: general characteristics, the Arabic-translated version of: the Intercultural Sensitivity Scale (ISS), MCSG work-related challenges, and perceived value of intercultural group work. Statistical analyses included Mann-Whitney, Kruskal-Wallis, and Spearman’s tests to examine associations between ICS and various factors.</p> Results <p>Among the 272 participants (170 domestic, 102 international), generally high levels of ICS were reported. Higher ICS was significantly associated with being an international student, higher English proficiency, multilingualism, and prior intercultural exposure (<i>P</i> &lt; 0.05). Domestic students reported more MCSG-related challenges and a greater perceived value in multicultural group work (<i>P</i> &lt; 0.05).</p> Conclusion <p>Third-year AFM students reported high ICS overall. Domestic students anticipated more MCSG work-related challenges yet perceived greater value in intercultural group work. Given the non-random sampling, findings may not be generalizable beyond the study population. The educational institution should foster opportunities for intercultural interactions among students, both within and outside the classroom.</p>