The present study explored the influence of psychological stress on the development of purpose among youth of color living in urban, low-income communities. A qualitative approach based on grounded theory was used to understand how stress-related experiences influence the development of youth purpose in participants' own words. Findings revealed that participants faced substantial psychological stress in their lives resulting from financial, family, academic, vocational, peer, neighborhood, relocation, and immigration-related stressors. Moreover, stress appeared to act as a barrier to purpose development in two common ways: (a) through youths' perceptions of "impossibility" of realizing their goals for the future and (b) through youths' experiences of regularly being "overwhelmed" to the point where purpose engagement was not a priority. However, stress could also serve as a "motivator" to purpose development for youth through (a) "pressure" from important others who held high expectations and (b) strong desires to escape from contextual stressors, such as violence or financial strain. Four patterns emerged from the data indicating that social support could serve to mitigate stress, propelling youth to develop a sense of purpose.