Children face many changes in the transition from preschool to compulsory school; shifting identities and new school cultures can dominate experiences in this transitory year (Dockett & Perry, 2022), called the preschool class in Sweden. Working with the transition and adapting to these changes requires competence in what can be considered duelling pedagogical frameworks, creating a sense of liminality and ambiguity for teachers in the preschool class (Ackesjö & Persson, 2019). Through reflexive engagement with teaching practices, this research aims to bring understanding to the tensions and contradictions present for teachers and children experiencing this transition. Engaging with intergenerational co-constructed, collaborative play (Lindqvist, 1995), the children and teachers move between the borders of imagination and reality, as well as pedagogical frameworks, exploring the sense creation of learning (Hakkarainen, 2004) in the formation of the preschool class’s borderland teaching practice. This play allowed the teachers to work with transformative dialogic pedagogy, creating a hybrid third space that incorporates intersubjectivity of teachers and children (Gutiérrez, Rymes & Larsson, 1995). In creating third spaces, knowledge is not just reproduced, but created and interpreted anew together, building up as Kennedy (2006) theorised, a third way of living. Although the preschool class sits in a borderland, analysis of field work and group discussions showed that responses to ambiguity (for example, agency, or even ambivalence), still have the potential to create spaces of meeting and co-construction in the classroom as children and teachers navigate this transition.