Psychological contract (PC) theory has garnered significant attention proving crucial in understanding contemporary employment relationships. Defined as “an individual’s beliefs regarding the terms of conditions of a reciprocal exchange agreement” (Rousseau 1989:123), the PC is envisioned as an exchange schema that evolves over time. However, the study of PCs often lacks consideration of time and the impact of social context, despite calls to address these gaps. This PhD aims to investigate the construction and evolution of the PC, with a career novice sample, emphasising the influence of temporal dynamics and social context. Utilising a qualitative individual-level process methodology, data were collected from 30 undergraduate interns over 12-15 months, using Bourdieu’s theory of practice (1977) as a complementary theoretical framework to the PC. Bourdieu’s concepts of capital, habitus, and field, provide a lens to examine the PC as a dynamic social exchange influenced by the broader social context. The study argues that Bourdieu’s theory can enhance understanding of the PC by highlighting the interplay between individual and social factors and their evolution. Despite being theorised as dynamic, much PC research assumes a static view, neglecting temporal processes and social influences. This PhD addresses these gaps by exploring the construction and evolution of the PC within the context of undergraduate internships. The study's findings indicate that the accumulation and depletion of various forms of capital underpin the dynamic PC exchange, and that capitals operate in a mutually influencing and reinforcing manner. The study also captures interns’ perceptions of which organisational practices enhanced or hampered their accumulation of capitals. In conclusion, this research contributes to PC theory by integrating Bourdieu’s sociological concepts, offering a nuanced understanding of the PC as a temporally and socially embedded construct. The findings provide valuable insights for researchers, practitioners, educators, and interns.