This study examined the effects of reading global literature in literature-based instruction on overall L2 literacy ability and intercultural sensitivity development. One hundred twenty-two 5th and 6th grade elementary students and one hundred forty 7th and 8th graders in middle school in Korea participated in this study. Among the 262 participants, 131 students from each grade were assigned to the treatment groups,and remaining 131 participants were in the control groups. The treatment group received 39 sessions of reading global literature in thirteen weeks; the control group did not receive any treatment in this study. The latent mean analysis with the measurement model between literacy ability and intercultural sensitivity across control and treatment groups shows positive effects of reading global literature on L2 learners’ development of literacy ability and intercultural sensitivity. The study results provided support for reading global literature as an effective and powerful instructional method to improve L2 learners’ literacy ability and intercultural sensitivity. The students in the treatment group were more interculturally sensitive and outperformed the control group in L2 literacy achievement. The findings of this study have educational implications for teaching L2 with global literature to enhance L2 learners’ intercultural sensitivity and literacy ability in their L2 learning.