This chapter builds on Dialogical Self Theory to investigate the identity development of adolescents growing up in multicultural societies. Their cultural identity is not only compounded by the rapid cultural changes associated with globalization, but also by the paradoxical revival of cultural traditions which the large-scale compression of "time and space" has incited at local levels of society. Dialogical Self Theory, which is based on the metaphor of the self as a "society of mind," helps to understand the dilemmas of tradition and postmodernity, of localization and globalization, within the self of individual youngsters.