Internationalization policy in higher education facilitates a nation's economic growth and demonstrates generosity to other nations. This study investigates the impact of the International Higher Education Scholarship Program of the International Cooperation and Development Fund on recipients' perceptions of and experiences in Taiwan. Based on the management, education, medical science, and engineering programs of four case study universities, it finds attitudinal changes, increased intercultural competence, and signs of institution transfer and knowledge network formation. Socialization has fostered scholarship holders' cultural affinity and shared identity with Taiwan. As higher education institutions promote knowledge sharing and cultural diffusion, international students are also a nexus of cultural diplomacy, the attractions of which are more conspicuous than knowledge diplomacy's benefits. The empirical evidence of this study helps delineate theoretical frameworks of diplomacy in international higher education. Its longitudinal observation of alumni career trajectories can enrich cross-sectional evaluation.