This article conceptually examines TESOL teacher intercultural identity development in the Australian multicultural context. Using intercultural communication competence theory, the author discusses how TESOL teacher intercultural identity is developed and transformed in action and across languages and cultures. The in-progress formation of TESOL teacher intercultural identity is discussed from three perspectives. First, TESOL teachers must have second language knowledge and demonstrate ability to manage intercultural verbal communicative skills and styles. Second, they need to have more than one set of body languages and demonstrate ability to manage intercultural nonverbal communicative style and sensitivity. Third, they are engaged in social co-construction of intercultural identity through teacher-stakeholder interaction, having positive impact on themselves and on their students, particularly those with a refugee background. The author also proposes three strategies for TESOL teacher intercultural identity development and points out the future research on its potential contributing and/or interfering factors.