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The study examines which type of religious knowledge acquired in Religious Education in Greek Secondary schools can initiate both personal and collective change in understanding and appreciation of different cultures. It is blended research using participatory action-research with ethnographic elements methodology. The research gathered qualitative and quantitative data through questionnaires, focus groups, journals, and the technique of the “Most Significant Change” from four resources/target groups (students, teachers, parents, researcher). It took place during the 2017–2018 school year in a High and an Upper Schools in which the researcher participated in the school communities as a teacher. Statistical analysis (SPSS), content analysis and thematic analysis of the data show that religious knowledge, developed in Education with the aim of religious literacy, as defined in the context of Greek/European context, can operate on a personal and collective level, in cultivation of respect and underacting of cultural diversity. This is achieved when the religious knowledge is understood as experience and is meaningful when applied to the concepts of understanding, reflection and action. The overall finding is that transformative dynamics of religious knowledge facilitate both minor and major changes in the mindset of young people. Concluding, in Religious Education without sacrificing the religious content of the subject, a high degree of cultural recognition and acceptance of religious diversity can be achieved, and to a certain extent enable a change in attitude towards immigrants and refugees, in other words the ‘other’ as well as in communication and acquaintance between team members, recognition of and a greater degree of acceptance of otherness, and the development of relationships which were non-existent before.