The challenges of identity formation are particularly difficult for minority youth because of the clash of traditional culture and the host culture. This study examined the effects of parenting style, acculturation, and parent and adolescent ethnic identity on the self-esteem and school performance of East Indian and European American adolescents. Participating in the study were 70 East Indian and 70 European American adolescents, ages 13 to 19 years, and their parents. Adolescents and parents were interviewed separately in their homes. The instruments used were the Multigroup Ethnic Identity Measure, Child Rearing Beliefs Measure, and Self-Description Questionnaire. Students' grades were used as a measure of academic performance. The findings indicated that adolescents who were themselves more ethnically identified and those whose parents had higher ethnic identity had higher self-esteem than students who were less ethnically identified themselves, and those who had parents with lower ethnic identity. East Indian parents rated the parenting philosophies of authoritativeness, training, and esteem significantly higher than their European American counterparts, with no difference in ratings of shaming. There were no ethnic group differences on self-esteem. East Indian American adolescents had an average grade point average of 3.37, significantly higher than the European American adolescent average of 3.14. East Indian American parents and adolescents had a significantly higher ethnic identification than European American parents and adolescents. (Contains 10 references.) (KB)