Cultural adaptation is considered a significant asset in our modern world. This is manifested clearly when an employee is transferred to a vastly different culture away from their original environment (i.e. Arab teachers working in non-Arab countries). Cultural adaptation is not only considered a necessity to adapt to new environments, but it also influences the employer performance inside the organization. This research discusses the effects of tolerance and cultural intelligence (CQ) on Cultural adaptation and the psychological contract Fulfillment. Also discussed are the effects of moderate roles of cultural adaptation on the relationship between tolerance, CQ and psychological contract fulfillment. This study aims to find the relationship between the four variables, and to describe the cultural adaptation and psychological contract Of Arab teachers working in Malaysian schools and institutions. The research uses a descriptive methodology. The community is based on Arab teachers who teach Arabic and Islamic Studies in Malaysian schools and Institutions that are registered in JAKIM. Unit samples are represented by Arab teachers that are working in Malaysian institutions. The number of employees researched are 88 employees based on the registered statistics in JAKIM in 2019. The study uses the complete consensus. The hypothesis was tested through interviews and questionnaires. The results showed a correlation between tolerance, CQ (with two aspects Knowledge and motivation) and adaptation as well as psychological contract. Adaptation is accepted as moderate correlation between the variables relations. The relation between CQ behavior and psychological contract was not significant. The interviews showed that an Arab teachers don’t feel satisfied with their psychological contract.