Research in general has shown a beneficial effect of ethnic identity on adoptees' psychological well-being. However, studies also indicate that overemphasis on birth culture and racial/ethnic differences may negatively impact adoptees' overall adjustment. Using Rojewski's (2005) and Brodzinsky's (1987) propositions of a balanced approach to adoption and culture issues, this study examines the curvilinear relationship between ethnic identity and psychological well-being of international adoptees (i.e., psychological well-being will be high when ethnic identity is moderate instead of either low or high). Using data from a study on identity development and psychological well-being in international adoptees, the hypothesized relationship was examined among 100 internationally adopted Asian adolescents and young adults placed with White parents in the United States. Results indicated that a moderate level of ethnic identity was associated with positive esteem, whereas low and high levels of ethnic identity were related to low self-esteem. Implications for practice and research are discussed.