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Graph Neural Networks (GNNs) have received increasing attention due to their ability to learn from graph-structured data. However, their predictions are often not interpretable. Post-hoc instance-level explanation methods have been proposed to understand GNN predictions. These methods seek to discover substructures that explain the prediction behavior of a trained GNN. In this paper, we shed light on the existence of the distribution shifting issue in existing methods, which affects explanation quality, particularly in applications on real-life datasets with tight decision boundaries. To address this issue, we introduce a generalized Graph Information Bottleneck (GIB) form that includes a label-independent graph variable, which is equivalent to the vanilla GIB. Driven by the generalized GIB, we propose a graph mixup method, MixupExplainer, with a theoretical guarantee to resolve the distribution shifting issue. We …