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This paper presents a study on the development of Indonesian English as a Foreign Language (EFL) teachers intercultural capability in an overseas study programme and its impacts on classroom English Language teaching practices by utilising the conceptual framework of the development dimension of intercultural capability by Bennet (1993), Taylor (1994), and Chen and Starosta (1997). By using narrative inquiry as research methodology, this study draws on the stories of two Indonesian EFL teachers experiences of intercultural learning during a master degree programme overseas. Data was gathered through semi-structured individual interviews with Indonesian EFL teachers who have completed Master of Teaching English to Speakers of Other Languages (TESOL) studies in Australia. The finding shows that communication and cultural disequilibrium in an overseas study programme play a key role in the development of EFL teachers intercultural capability in a way that enables them to develop their personal attributes from ethnocentrism to ethnorelativism. The finding also reveals that although the teachers become interculturally capable, the overseas study programme does not necessarily contribute to their oral English skill development. A deeper reinforcement in teachers cultural environment and the quality of experiences encountered overseas is needed. In a further result, this study reveals that the development of the teachers intercultural capability affects their subsequent classroom English teaching practices in a way that they begin to employ a dialogical communication and interaction by reflecting to their past experiences, especially when the teachers recognized the importance of employing a communicative interaction when they encountered challenges abroad.