AbstractThis paper explores the role of linguistic capital in production and reproduction of social inequalities drawing on 20 in‐depth qualitative interviews with Chinese international students in a German university. The paper highlights that while studying abroad can provide advantages when it comes to learning a new foreign language, it can also bring some disadvantages for those who are educated in a foreign language. It underscores that being proficient in a foreign language is not solely about the ability to communicate, but also about assigning a social value to it for some speakers such as international students. Moreover, the contexts of countries of origin and education are essential. The findings indicate that being educated in a foreign language can lead to various difficulties for international students, such as feeling excluded from social circles, facing academic challenges, and encountering obstacles when trying to find a job while studying. However, despite these challenges, education in a foreign language and particularly in Germany is perceived as advantageous because it helps students to accumulate linguistic and cultural capital, which they believe will benefit them in the labour market upon their graduation. Therefore, this paper stresses the importance of not only the advantages of linguistic capital, but also the ways in which it can simultaneously function as both an advantage and a disadvantage, thereby perpetuating inequalities within and across borders.