Transnational education, primarily at the tertiary level, has been growing rapidly, bringing with it high hopes and expectations of benefits to institutions in the countries of origin and destination. However, these potential benefits come with a set of challenges that must be overcome. These challenges include the need to reconcile the often-conflicting objectives of the stakeholders involved, bridge learning traditions/styles and cultural divides, and harmonise cross-national standards. These challenges are on display in transnational higher education involving UK and Malaysian institutions, which have not only had a long history but also host a large number of students. In the Malaysian case, education policies that are designed to serve affirmative action complicate this collaboration.