Research shows that internationalization of higher education is a process rather than an end product. This paper applies the Dynamic Systems Theory to examine the nature and development of internationalization of higher education, and proposes that internationalization of higher education is a dynamic system. A dynamic framework of internationalization of higher education is therefore proposed. Internationalization of higher education has five levels--Global, National, Institutional, Program, and Personal Levels, and each level has five components--Purposes, Outcomes, Programs, Approaches, and Projects. Each level has a Developmental Range depending on the dynamic relationships between factors at this level. The Initial State, Attractor State, and Control Parameters are other key factors in examining internationalization of higher education at individual levels. A "snapshot" and a wheel of internationalization of Stockton University are further discussed as examples of applying a dynamic systems approach to internationalization of higher education. This dynamic framework of internationalization provides theoretical and practical implications for defining, developing, and strengthening internationalization of higher education.