Abstract: Transferred teachers in rural nursery is a disadvantaged group in the Chinese educational system. Adopting Smith’s “policy implementation process” model, this study examines the implementation dilemmas of the policy for transferred teachers in rural nursery. The findings reveal that: the professional development trainings for these teachers are working less well; the overall quality of teachers in rural nursery is declining; the transferred teachers are facing difficulties in their adaptations to the new position; the tendency of “nursery towards primary school” is hard to be terminated. The roots of the policy implementation dilemma include: the vague and unreasonable policy aim; the inefficiency of implementation organizations; the implementation deviations under institutional pressures; the neighborhood effects in rural educational settings. Based on the empirical findings, the paper suggests the following solutions: improving the clarity and rationality of the policy aim; reframing the organizational structure to improve executive efficiency; facilitating the target group’s understanding of the policy; refining the educational environment of rural nursery.