The paper focuses on ecological and cultural diversities in Asia which have resulted in these countries becoming the main sources of cross-cultural data and studies. Initially, there were one-way research studies where non-Western cultures were the target for obtaining comparative data for testing tentative theories. The outcome was a vast body of replicative studies, dominance of psychologists from the West, indiscriminate use of tests and measures developed in the West and a superficial research ethos, where the needs and problems of the host country were ignored. Exposure to Western psychology resulted in the professional growth of Asian psychologists and with growing cultural sensitivity, culture was treated also as the source providing insights, constructs and methods for conducting research. This has resulted in a deeper understanding and reconceptualisation of the phenomena under investigation (achievement, individualism-collectivism and moral develop ment). In addition, culturally derived psychological concepts and culturally appropriate measures have been used in studies on stress, justice and well-being. General issues and the emergence of indigenous psychologies are also discussed.