Guided by a theoretical discussion on the effect of internationalisation at home (IaH) practices on students' acquisition of intercultural competence, we used reflexive journals and semi-structured interviews to examine 10 international and 20 domestic students' goals, progress, and challenges in their engagement in an IaH intercultural programme. Thematic data analysis revealed that challenges, including insufficient foreign language competence, social and cultural background knowledge, intercultural awareness, and intercultural communication skills impeded students' intercultural engagement. Mutual sharing and support, collaborative discussion, and critical reflection provided them with more intercultural engagement and facilitated acquisition of intercultural competence. Comprehensive programme improvement suggestions are proposed.