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This paper explores the notion of a ‘just imaginary’ for social inclusion in higher education. It responds to the current strategy of OECD nations to expand higher education and increase graduate numbers, as a way of securing a competitive advantage in the global knowledge economy. The Australian higher education system provides the case for analysis. Three dilemmas for social inclusion policy in this context are identified: questions of sustainability, aspiration and opportunity. The paper argues that while social inclusion policy has ‘first-order’ effects in higher education, ajustimaginary is required for more inclusive ‘second-order’ effects to be realized. It concludes that transformation of the current imaginary will require a more robust theorization of relations between social inclusion and higher education, to give new and unifying meaning to existing practices and to generate new ones. Short of this, social inclusion may be little more than justimaginary. [ABSTRACT FROM PUBLISHER]