Internal branding is increasingly seen as a doctrine to ensure employees' delivery of the brand promise by shaping employees' brand attitudes and behaviours. However, few studies, if any, were conducted into understanding the internal branding process from the viewpoint of employees who are the end receivers. Therefore, this study aims at exploring employees' perceptions towards the internal branding process. It identifies the relevant mechanisms and describes how internal branding affected service employees. The challenges of its success are uncovered and discussed. Finally, managerial implications and future research directions are provided.