The final year design project is one of the most important components of any undergraduate engineering program. Fair and efficient project allocation procedures can be vital in ensuring a great student experience and exceptional learning out of these projects, which then could contribute in shaping students' future prospects. In this paper, we review a wide range of project allocation strategies used in various universities at undergraduate levels. We then focus on the project allocations in transnational education (TNE) contexts, which inherit additional allocation challenges. We highlight these challenges and provide recommendations to solve them. We present and compare project allocation strategies adopted at two of the largest TNE programs in China. We also present the factors that influence the project allocations, particularly regarding TNE provisions. Finally, we describe the challenges associated with the project allocations in the TNE scenario, along with proposing some feasible solutions to address these challenges.