Situated within the changing dynamics of international student mobility, this paper explores the meaning of transnational in-between identity. The empirical evidence is based on the key findings of a four-year qualitative study on Chinese students who returned from the UK after completing their university degrees. The paper argues that transnational in-between identity is a fluid and diverse process of self-formation through which agency interacts with the four key dimensions of intercultural competence, reconstruction of locality, diaspora consciousness and mixed senses of belonging. The conceptual contribution of this research is that it combines transnationalism, a theory normally confined to the field of migration studies, and the concept of in-betweenness, derived from intercultural adjustment, to investigate the identity changes experienced by student returnees.