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The Department of Health's introduction of intermediate care recognised the need for rehabilitation following acute hospital care. The importance of rehabilitation was also stressed by a review carried out across England and Wales by District Audit. This article reports a phenomenological study carried out to explore service users' experiences of a 22‐bedded intermediate care service. Face‐to‐face, semi‐structured interviews were conducted with eight service users who were older people, with a further follow‐up interview two weeks later. Data was analysed using an open‐coding and theming approach. One of the six emergent themes is discussed in this article: service users' rehabilitation experiences. Data was themed into a rehabilitation framework of users' understanding, assessment and goal setting, interventions and transfer home. Intermediate care was found to provide support for service users between discharge from acute hospital and return to their own homes, but service users lacked understanding and awareness of the potential of the intermediate care service. They did not feel involved in their assessment and goal setting and so were unable to make individual contributions regarding their own rehabilitation needs. Interventions were subsequently not linked to their needs and transfer home experiences were variable. Users' experiences did not reflect the Department of Health's four principles that underpin the delivery of intermediate care: person‐centred care; whole system working; timely access to specialist care; promoting health and an active life. Recommendations are made to address these and to incorporate the recommendations from District Audit.