The issue of immigration is especially controversial in the United States as immigrants today have not only increased in number but constitute a more heterogeneous population. Unlike the earlier waves of immigrants, which were predominantly of European origin, the post-1965 migration trend from Asia, Latin America, and the Caribbean has tremendously altered the demographic characteristics of the U.S. population. In-depth exploration of various contextual factors affecting ethnic identity formation can offer insights that help social work practitioners and policy planners overcome the difficulty in working with immigrant populations and their descendants. This article reviews significant contextual aspects influencing immigrant children's ethnic identity formations and proposes practice recommendations that help facilitate the children's adaptation in the host society. Abstract published by arrangement with Taylor and Francis.