This paper examines how transnational researchers have incorporated political dynamics into their analyses of transnational linkages and their impacts. It argues that they have done so in ways that have focused on conflict and contestation between migrant/diasporic communities and homeland states/communities rather than within them. At the same time, in construing transnational linkages as instruments of particular actors, they have presented a narrow conception of how transnational linkages interact with political dynamics. As an alternative, the paper proposes a political settlements approach which views transnational linkages as institutions embedded in power relationships between competing groups defined in class, racial, ethnic, religious and gender terms. This approach, it is argued, overcomes these two problems by presenting a more disaggregated view of the actors, interests and agendas involved and construing transnational linkages as simultaneously instruments and arenas of contestation.