Modern universities have largely been portrayed in the literature as an extension of nation building projects, focusing on the state as primary actor. This article challenges such presuppositions by separating 'nation' and 'state' and with a critical appropriation of diasporic subjectivity and institutions from a comparative historical perspective. The article has four themes: 'diaspora', 'ethnic internationalism', 'stateless nations' and 'internationalisation' in higher education (IHE). It illustrates these themes and their interrelationships by considering Koreans in the Japanese colonial period (1910-1945) and Jews during the British Mandate for Palestine (1920-1948) and construing them as stateless nations. These two historical cases illustrate how higher education was linked to ethnonational diasporas and internationalisation in the absence of a supportive state apparatus. The paradox is that ethnic nationalism was not only compatible but often overlapped with ethnic internationalism in higher education. The conclusion of this comparative study suggests the implications for the twenty-first century and the important role of diaspora in processes of IHE then and now.