The context of cultural and diversity in early childhood education involves the diverse cultural, linguistic, and historical background of children and families, such as First Nations families, immigrant or refugee populations. The contexts are extremely important in Australia where the population is multicultural and the Aboriginal and Torres Strait Islander people are still considered the First Peoples of the land. Such backgrounds define identity, language, tradition, and sense of belonging in children and thus, cultural responsiveness is a very crucial aspect in an early childhood setting.

(Australian Children's Education and Care Quality Authority, 2020)

This context is highly relevant to early childhood education as it directly influences inclusive curriculum design, communication with families, and culturally safe learning environments. The Early Years Learning Framework places emphasis on respecting diversity, cultural competency, and effective collaboration with families.

Culturally responsive pedagogy and social identity theory are sociological theories that emphasize the effects of cultural belonging on self-esteem and learning amongst children. The bio-ecological model by Bronfenbrenner also describes the influence of cultural and community setting on development. Modern scholarship emphasizes the need to appreciate Indigenous views and promote multilingual and multicultural identities in education.

In the changing Australian society, there is a rise in migration and a continuous move to reconcile, a sign of increased diversity. Teachers need to understand that cultural identity is dynamic, complex and closely linked to the sense of belonging, wellbeing, and involvement in the learning process of children.