In this paper the authors draw on a larger project related to diasporic identification in order to explore the concept of transcultural literacy. They argue that transcultural literacy grows out of border-crossing dynamics that extend beyond the binaries of "us" and "them" as these are lived within and between nations. In this way it is responsive to, and reflects, the various shifts between the local and the global; between place and space. Transcultural literacy is inseparable from social and cultural practices of meaning- and identity-making on the fault-line between various and often competing cultures. This model of transcultural literacy uses theorisations of space to connect textual practices to the construction of hybrid identities. In so doing, it offers an alternative to models of literacy premised on liberal or neo-conservative understandings of cultural difference. In this paper, we explore transcultural literacy in relation to current literacy debates.