This study examines classroom code-switching in relation to individual and group identity and to functional use of two languages. It investigates how high school Chinese immigrant students perceive the use of first language (L1) and second language (L2) in class, and how they use these languages during group activities. The interview data demonstrate that the students in this study had multiple and contradictory feelings about (L1) and (L2) use. The observation data show that there were differences in the functions of these students' (L1) and (L2) discourse. These findings indicate that bilingual classroom code-switching involved dilemmas for the students. They appeared to be torn between identifying with compatriots in (L1) and gaining membership in mainstream classes in (L2), between maintaining (L1) and developing (L2) and between using (L1) for academic discourse and developing academic discourse in (L2). Identity and language functions seem two side-by-side components of the dilemmas. A complex vision that includes both may address code-switching dilemmas more adequately.