The Anglo-American invasion of Iraq and the fall of Saddam Hussein in 2003 brought exiles of Hussein's tyrannical reign flooding back to their native land, bringing with them the flavours and customs from adopted homes and with it sweeping, transnational power. 'Handing over power to the Iraqis' meant handing over power to the country's most elite transplants. Meanwhile, transnational diasporic activism and networks have simultaneously challenged state policies, buttressing the state apparatus through welfare provision and solidarity networks. How did the Iraqi diaspora achieve such a powerful position and shape the Iraqi state in 2003? What kind of state did they build? And what lessons can be learnt from the Iraqi diaspora for understanding Iraqi nationhood and statehood today? This study explores these questions, drawing on interviews with a wide range of actors to offer a pertinent insight into the critical role of diaspora in shaping the evolution of homeland states under modern processes of globalisation.