This essay focuses on the opportunities and risks that adolescents face when developing cultural identities in the context of globalization. It starts by illustrating how globalization entails that adolescents increasingly have interactions with people from diverse cultures in myriad domains. Adolescents navigate local and global worlds, for example, with regard to language, diet, dating, and work. With the exposure to diverse cultures, new opportunities and risks arise. The nature of and evidence for three of these are highlighted. One is the risk of adolescent cultural identity confusion, with attendant internalizing and externalizing pathological behaviors. A second is the emergence of cultural gaps between adolescents and parents, a phenomenon that may constitute both a risk and a necessity. The third issue discussed is the way that globalization may open up more opportunities for youth civic involvement, even if such involvement sometimes aims to resist globalization.