There is a growing body of research examining the prejudice and discrimination experienced by Muslim youth in Canada. This article explores the narratives of feeling excluded and misunderstood articulated by 8 Canadian-born Shia Ismaili Muslim youth (aged 14-17). Drawing on a psycho-social theoretical framework, I speculate that youth utilize a "happiness defense": a term that denotes their portrayal of being a "good immigrant" or happy subject who is grateful to Canada for giving them a home. My analysis looks behind the scenery of the happiness defense to examine deeper dynamics such as discomfort, difference, and anxiety as youth seek to find a place of belonging in Canada. Underneath the happiness defense, I speculate about the anxiety of hybridity that is linked to feelings of not belonging. The implications of these findings will be helpful for policy makers, educators, community workers, and adults who work with adolescents.