Community service has emerged in recent times a part of PETE program for the purpose of enhancing pre-service teachers' experiences in working with culturally diverse community organizations that cater to people, particularly from low socio-economic backgrounds. Given increasing multicultural changes in the nation's population, pre-service teachers' knowledge of, and experience in, their community environment is paramount because the school policies, among others, follow community direction and aspiration. As Banks (1997) advocates, pre-service teachers will need to acquire new knowledge, skills and attitudes prior to their graduation from teacher preparation programs. The purpose of this study was to investigate how per-service teachers develop their teaching and leadership skills and identify issues and problems in working in culturally diverse community environments. Twenty-seven pre-service teachers, 13 females and 14 males, from a university in the southeastern area of the United States participated in this study. The methods of data collection included document analysis of reflective journals and narrative papers. Data were analyzed using constant comparative method to provide a better understanding of the development of pre-service teachers (Glaser and Strauss, 1967) during the student practicum period. Six major themes were found in this study. First, pre-service teachers discovered new knowledge in learning to identify roots of problems and solved them, and through this process, they learned new experiential-based skills. Second, the development of leadership skills such as communication, social relationship, program management, problem-solving and subject's background were major issues addressed in per-service teachers' reflection reports and narrative papers. Third, the pre-service teachers became aware of participants' low socio-economic and multicultural diverse backgrounds such as family issues, disability and also gained new ethnic understandings. Fourth concerns the role identification: most pre-service teachers found that they represented a positive role model in the community. Fifth is about differences that emphasized issues between male and female pre-service teachers: this study revealed that female pre-service teachers put more emphasis on the issues concerning the parents-teacher-child relationship and health/fitness matters while male pre-service teachers focused on issues of role playing and problem-solving. Finally, the selection of useful textbooks: Educational Psychology, Physical Education Curriculum, and Developmental/Adapted Physical Education Making Ability Count were heavily used and cited in pre-service teachers' narrative papers. Results indicated pre-service teachers to adopt a common paradigm during their community service, yet other factors emerged that need to be considered to make student practicum experience an effective PETE program.Keyword(s): multiculturalism/cultural diversity, professional preparation, youth sports