Results show that victimization by one's peers has consequences for adolescents' psychological health (depressive symptoms) when their personal identity (sense of worth and being accepted) is undermined. The study found that peer victimization mediated the relationship between bullying behavior and depressive symptoms. Thus, bullying behavior in itself was not related to depressive symptoms; only peer victimization apparently influenced adolescent depressive symptoms. It also found that personal identity mediated the relationship between peer victimization and depressive symptoms. Results confirmed the influence of family characteristics on all variables in the mediation models. Family characteristics of cohesion, closeness, and affirmation of worth apparently can sustain positive personal identities in the face of peer rejection, thus protecting against depressive symptoms. The final combined model, in which the two mediation models and the influence of family characteristics on all variables were confirmed, explained half of the variance in adolescent depressive symptoms, an impressive finding in the context of previous studies in this field. The sample was recruited from two high schools in two districts in the Netherlands. The Dutch version of Children and Bullying was used to assess the extent to which adolescents bullied and were bullied by others. Adolescents' personal identity was measured with the Spatial Continuity of Identity Questionnaire, and family cohesion and disorganization were measured with the Leuven Family Questionnaire. 2 figures, 1 table, and 53 references