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Relationships between students and external partners in work-integrated learning can vary and power dynamics, hierarchies and student agency have been under explored in research to date. Integrated research involving work-integrated learning, students as partners and transdisciplinarity presents an opportunity to enrich each of these fields. This paper presents the results of a case study of transdisciplinary project-based work-integrated learning in Australia. Our results highlight that reciprocity and the valuing of student knowledge are key elements in breaking down traditional power dynamics and enabling student agency, in line with the transdisciplinary principle of mutual learning. Participants who valued these elements in their relationship were less likely to frame the relationship in hierarchical terms and were more open to learning from one another. By empowering students to draw on their expertise and reframe challenges while also preparing partners for this kind of relationship, all parties can be positioned as learners within work-integrated learning.