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This paper addresses the need to embrace the diversity of the men and women of the Armed Forces. Over the last two decades the military has evolved from an organization of predominately single white (males many of which not having a high school diploma) to an ethnically and multiculturally diverse organization of men and women. Because of this transformation, the leaders of the Armed Forces must learn to manage that diversity and take advantage of its benefits. Embracing diversity as an asset provides a myriad of advantages. Among them are 1) full utilization of human capital; 2) reduced interpersonal conflict; 3) greater innovation and flexibility; 4) improved productivity; 5) reduced employee turnover; and 6) improved recruiting opportunities. There are, however, difficulties involved in managing diversity. The United States Armed Forces have not yet created a culture that is able to take full advantage of diversity.