Collective trauma, be it through colonization (e.g., Aboriginal Peoples), slavery (e.g., African Americans) or war, has a dramatic impact on the psychological well-being of each and every individual member of the collective. Thus, interventions are often conceptualized and delivered at the individual level with a view to minimizing the psychological disequilibrium of each individual. In contrast, we propose a theory of self that emphasizes the primacy of cultural identity for psychological well-being. We present a series of studies that illustrate the importance of cultural identity clarity for personal identity and for psychological well-being. Our theoretical model proposes that interventions aimed at clarifying cultural identity may play a constructive role in the promotion of the well-being of group members exposed to collective trauma.