The present study highlighted the effects of individual level absorptive capacity (ACAP) on knowledge transfer in international assignments. We examine the role of ACAP for expatriates as well as for host country nationals (HCNs) who are involved in the knowledge transfer process. Using empirical data obtained from 79 dyads of expatriates and their colleagues, we examine the effects on knowledge received by expatriates and by HCNs. Cultural distance and frequent interaction with HCNs, were also tested as predictors of knowledge transferred gained by the expatriates and expatriate performance, perceived success, and intentions to remain with the firm were studied as knowledge outcomes. Results supported the hypothesized relationships getween perceived ACAP and reported knowledge transfer, but also uncoverd an inteactions between expatriate and HCN ACAP on knowledge transfer rported by HCNs. Frequency of interactions with HCNs was related to expatriate reports of knowledeg transfer, while reported knowledge received by the expatriates was related to perceived success, and perceptions of knowledge transferred by the expatriates to HCNs was related to perceived performance. Multinationals companies would implement analysis of the two-way flow of knowledge in their international assignments as strategy to increase expatriate performance and success according with the results of this study.