In this paper, we explore intercultural communication as dialogue occurring in a third space. Through seven students' reflective essays on group-based intercultural learning, we analyse the ever-shifting communicative space that interlocutors produce through negotiating the meanings of difference and power and their dialogic relations with the other. Based on the findings, we propose intercultural dialogue (and intercultural communication) as a political and ethical response to the thirdness in the in-between space of communication, inherent in the character of social life but not always possible nor desired. We therefore suggest 'principles' for such dialogue be seen in this space and not as a teleologically-achievable ideal that privileges self-expression and normalises difference through a 'cultural diversity' discourse.