Results revealed that identity development of Hispanic adolescents was characterized primarily by changes in identity confusion rather than by changes in identity coherence; family functioning may predict identity confusion in early adolescence, but then the relationship may become more bidirectional later in adolescence; and finally, that there are three distinct patterns of changes in identity confusion (one characterized by decreases over time, another characterized by little or no change, and a third, much smaller class characterized by increases over time). The class whose confusion scores decreased over time was largely girls, whereas the smaller class whose confusion scores increased over time was largely boys. Gender differences emerged in adolescent-reported, but not parent-reported, family functioning, with girls’ reports increasing over time while boys’ reports were stable over time. Girls appeared to become more satisfied with their families over time, although their parents did not necessarily perceive similar improvements in family functioning. For intervention, the results suggest that modifying adolescents’ perceptions of family functioning may help to reduce identity confusion in early adolescence. Data were collected from 250 Hispanic adolescents and their parents, attending 3 public schools in a heavily populated area in Miami. Tables, figures, notes, and references