Gudykunst (2005), in the Anxiety/Uncertainty Management (AUM) theory, emphasises the importance of better managing the feelings of anxiety and uncertainty in order to successfully adjust to the new environment and communicate with the local community. To transcend cultural boundaries, expatriates should have the ability to appropriately address and react to intercultural situations and cultural intelligence may be the skill that can help to improve the capability for successful adaptation (Peterson, 2004; Thomas & Inkson, 2005). In this paper, we argue that the various components of CQ would positively influence the general, interaction and work adjustments of the expatriates in the host country and consequently improve their performance while assigned overseas. Utilising the AUM theory, we propose that by being culturally intelligent, expatriates would therefore manage their anxiety and uncertainty associated with their relocation to a different cultural background, thus putting in more effort for work related task accomplishment and socially integrating into the new environment.