The chapter describes empirical evidence about identity development in Swedish adolescents and emerging adults and highlights cultural and contextual influences that may be specific to coming of age in Sweden. Broad trends in identity options are evident in the lives of many youth living in Sweden. Although research on identity and diversity is in its infancy in Sweden, due at least in part to its tradition of longitudinal research, its contribution to understanding advances in adolescent-parent and peer relations, and its contributions to developmental interactionist metatheories of human development, the country has the potential to forge a new generation of identity research that takes into account the ongoing process of person-environment interactions.