Globalization has connected different human groups around the world in an unprecedented way. The study of culture seems particularly relevant to this global context, since different cultural behaviors, worldviews, and values inform the interactions of diverse human groups. How different cultures come to form and maintain a sense of identity is the topic of this investigation. Cultural identity formation is discussed in four chapters. The first chapter establishes the cultural psychological perspective that underlies this research and presents certain theoretical issues associated with cultural identity. The second chapter explores parallels between essential aspects of individual identity formation and collective identity formation. The third chapter argues that the ambient environment must be taken into account with respect to the formation of any particular culture and its identity. The fourth chapter presents qualitative data from Argentina as a cultural case study, highlighting differences between urban and rural environments. Finally, resolutions are presented for some of the theoretical cultural issues discussed that would also serve as future research opportunities.