In this chapter, we review identity development in German youth as well as the impact of German cultural history on difficulties in developing a sense of national identity. Current socioeconomic and political contexts, such as instability of labor markets and prolonged transitions to work and partnership, are likely to affect identity development. Identity development is particularly challenging for young adults from immigrant backgrounds, from low socioeconomic brackets, or who suffer from chronic health conditions. In this context, we highlight the supportive role of social networks (parents, peers, and romantic partners) for identity development. Cross-cultural studies have suggested distinctive identity concerns in youth from majority and minority groups.