In light of the need for new definitions of language and cultural competence, the present study sought to examine the cultural understandings and dispositions of Arabic language students at different Arabic course levels. Specifically, the study aims to determine if students’ experience with the Arabic language relates to their cultural understanding and openness towards the Arab culture. Congruently, the study inquired about what native speakers of Arabic (specifically, North African) expect from American students in terms of understanding and disposition towards Arab culture. This study fills a critical gap in the research in that it examines what students of Arabic know about the Arab culture at different stages of their language learning experience. Studying foreign languages has long been considered a key factor in helping cross-cultural understanding, building positive attitudes towards other cultures, and communicating effectively in the target culture. In the past, foreign language teaching targeted developing students’ linguistic and communicative competencies. Yet, it has been repeatedly observed that competency in these two aspects is not enough for students to function effectively in the target cultures which raised an urgent need to revise the definition of competence in the foreign language being learned (SFLL, 2006; MLA, 2007). Data collected for this cross-sectional study included scores from a Cultural Knowledge Test (CKT), an Intercultural Sensitivity Test (IST), and follow-up interviews with select participants. These instruments were administered to students of Arabic at different levels as well as native Arabic speakers. It is important to note that the CKT included items that showed shared cultural practices and perspectives between Arab regional cultures. A simple linear regression was conducted to determine if there is a correlation between scores of first, second, and third year students of Arabic on both CKT and IST, and CKT and language experience. Scores of first year students were also correlated with scores obtained from native speakers. The responses of students were juxtaposed with the responses of native speakers to see at what point students’ responses most closely approximated those of Native speakers. Preliminary findings suggest that there may not necessarily be a positive correlation between students’ language learning experience and their cultural understanding. However, it appears that a positive relationship exists between what students understand about Arab culture and their cultural ‘openness’ and ‘sensitivity’.