The everyday practices and socio-cultural identities of migrant youth have become a focal point of contemporary sociological research in Western countries of immigration. This article engages with the concept of transcultural capital to frame the possibilities and opportunities embodied in young migrants’ multi-layered identities and cross-cultural competencies in the context of an increasingly interconnected and diverse world. By re-conceptualising diversity and difference as agentic, transformational capitals to be valued, fostered and mobilised, this transcultural approach brings to the fore the multitude of skills, networks and knowledge that migrant youth access and develop through multiple cultural repertoires. Drawing on the narratives of migrant youth in Melbourne (Australia), this article argues that access to different – and not necessarily oppositional – cultural systems opens up a space for understanding the ability of migrant youth to instigate, negotiate and maintain valuable socio-cultural connections in ways that recognise, disrupt and transform social hierarchies.