More than sixty years after the Palestinian dispossession (al nakbah) around seven million Palestinians remain in exile from the homeland, with the issue of the ‘Right of Return’ being central to resolving the Palestinian-Israeli conflict. This ongoing dispossession is often characterised by Palestinians as living in ‘al ghurbah’ (a term encompassing estrangement, homesickness, loneliness, isolation and lack of belonging). The nature of the ongoing dispossession and exile of Palestinians arguably sets them apart from many other ‘diaspora’ groups. Yet despite their ongoing dispossession and what is for the most case a lack of physical access to the homeland, Palestinian identity and attachment to Palestine have been strongly maintained. A central factor in this maintenance of identity has been the transmission of the experience of Palestine, and the reproduction of Palestinian culture, to successive exilic generations through mediums such as story-telling, poetry, music and food. In more recent times, new and dynamic relationships with the homeland have also been forged through transnational technologies such as satellite television and the Internet, enabling Palestinians to engage in what scholars such as Laleh Khalili and Sophie Stamatopoulou-Robbins have characterised as the creation of a ‘virtual homeland’. Thus Palestinians in al ghurbah often occupy a transnational space (emotionally and politically if not physically) between Palestine and the host country. Within this transnational space cultural production and reproduction are crucial. Based on extensive fieldwork over a number of years with a range of Palestinian exilic communities, and drawing particularly on Palestinian communities in Britain and Australia, this paper explores the production of transnational spaces between Palestine and the host country. It argues that the nature of the relationship between the homeland and al ghurbah mean that a fluid and transnational approach - connecting both Middle East area studies and exile/refugee/diaspora studies – is necessary to understand the complexities of exilic Palestinian identity and attachments to the homeland.