This paper contributes to our theoretical understanding of how SMEs digitally transform during re-internationalization. We conducted qualitative, multiple-case studies into re-internationalization processes across 11 Chinese international SMEs. Using inductive data analysis, we identify two types of digital transformation, operational and strategic, and trajectories during re-internationalization. The complexity of digital transformation in re-internationalization is delineated by the intricate tensions between strategic digital transformation and new product development. Firm re-internationalization performance can plausibly be differentiated by how these tensions are managed.