Improved teaching of issues around sexuality and gender can ensure young people leave school more tolerant of others, the party says.
The Lib Dems also called for housing policies and health services to be tailored for the LGBT community.
Spokesman Peter Black said: "There's a lot of things we can do better but we are moving in the right direction."
He added: "I think the cost of delivering these services is actually quite small.
"But what we need to do is make sure the policies are right, and that people are trained to deliver these services in health, education and housing right across Wales."
A Welsh Labour spokesman said the party was "committed to ensuring equal treatment and equal rights for lesbian, gay, bisexual and transgender people right across Wales".
"When accessing education, healthcare, jobs or local services nobody should be treated any differently because of their gender or sexual orientation.
"Welsh Labour has acted - at both an Assembly and a UK level - to ensure equal treatment for lesbian, gay, bisexual and transgender people in Wales."
Plaid Cymru candidate Glyn Wise said his party had a "strong history" of standing up for LGBT rights.
Policy offerings include developing a gender identity clinic, and for men and boys to be offered the HPV vaccine for a cancer common in gay men.
The Welsh Conservatives promised a zero tolerance approach to hate crime, and more LGBT representation on the boards of public services.
UKIP spokesman Mark Reckless said: "UKIP supports equal treatment for all, welcomes progress which had been made on LGBT rights, and will work in the fifth assembly for a Wales which is fairer to all."
The Welsh Liberal Democrats have called for public services to be improved for gay, lesbian and transgender people.