The Mexican Nation State has been created upon the Doctrine of Mestizaje which includes one single language, Spanish, and one single identity, the mestizo. This doctrine hides social practices of discrimination (Gómez Izquierdo, 2008). Although multiculturalism in Mexico recognizes diversity and difference, it still perceives them as problems to be solved through assimilation policies (Díaz Polanco, 2006) towards the single identity and Spanish-language use. Traditionally, these assimilation policies have been carried out by the Mexican National Education System. Originally, in Mexico, the "other" referred to indigenous people, but today, the global financial crisis and the U.S. American immigration policy have created an additional "other", which are Mexican children who grew up in the United States, and who have been deported or repatriated to Mexico with their parents. The Mexican National Education System reported 307,000 foreign children in schools in 2013, 98% of which were born in the United Sates (Jacobo Suárez & Espinosa Cárdenas, 2015). Most of these children went to school in the US; therefore their adaptation in the Mexican education system offers many important challenges that schools have to take into account. This theoretical presentation aims to analyze the educational challenges binational children have to face by integrating into Mexican schools. On one side, the work will focus on critical applied linguistic theories which evaluate the multilingual subjective realities (Kramsch, 2009, 2011) that impact their learning process; and on the other, it will focus on theories that may offer transnational children possible solutions to create a third space (Bhabha, 1994) in which they may negotiate their multiple identities. By integrating into the Mexican school system, these children and adolescents face linguistic and identity challenges. In other words, they must assimilate to an educational system based on a monolithic paradigm (i.e., one identity, one language) (García & Sylvan, 2011) that does not recognize students' funds of knowledge (González, Moll, and Amanti, 2005) or linguistic and cultural multi-competences (Cook, 1992, 2002). Transnational children feel discriminated against because their multiple identities are not accepted. In addition, even though most of them possess Basic Interpersonal Communication Skills in Spanish because it is their heritage language, they do not possess Cognitive Academic Language Skills that allow them to succeed in school (Cummins, 1979, 1981). They need time and scaffolding instruction in Spanish to become proficient in academic areas. Hence, the growing research body in this area aims to support Mexican schools to shift from a monolithic to a pluralistic approach that would recognize all students' linguistic and cultural multi-competences. By acknowledging diverse students' funds of knowledge, schools could create ecological plurilinguistic and pluricultural spaces where all languages and cultures are perceived as resources. This would permit transnational children to create imagined communities (i.e. communities of the imagination that allow them to expand their identities and change their sense of self) (Norton, 2000) that would support them to integrate their lived experiences in their learning process, and to resist and contest their marginalization by repositioning themselves as no longer marginalized (McKay & Wong, 1996).