Youth identity formation is a dynamic and multifaceted process influenced by biological, psychological, and socio-cultural factors. As young people transition from childhood to adulthood, they navigate complex challenges that shape their self-concept, beliefs, and behaviors. This paper explores the interplay between youth identity and vulnerability, highlighting how systemic inequalities, socio-political instability, and digital engagement impact identity development. As it relates to digital engagement, the paper considers, in particular, the opportunities that digital spaces offer for self-expression and the risks they bring such as cyberbullying and surveillance. Theoretical frameworks, including Erikson’s psychosocial development theory and Marcia’s identity status theory, provide insight into how youth explore and commit to identities. Additionally, Social Identity Theory and intersectionality perspectives illustrate the external pressures young people face based on gender, socioeconomic status, and social group affiliations. Vulnerability emerges as a key concern, with youth from marginalized backgrounds experiencing heightened risks related to unstable familial support, economic constraints, and societal expectations. The paper underscores the need for policies and interventions that foster resilience and empowerment, ensuring that youth identity formation occurs in a supportive and inclusive environment.