This research aims to understand the identity and its relation with psychological health in Cyprus, in both Turkish-Cypriot and Greek-Cypriot populations. Parallel mixed design was used, in which both quantitative and qualitative data were utilized. In the qualitative data, a semi-structured interview was carried out with 13 Turkish-Cypriots and 13 Greek-Cypriots. Thematic Analysis technique was used to analyze the data. The quantitative study included 366 participants, 175 Greek-Cypriots and 191 Turkish-Cypriots. The results show that dual identity categories had the highest percentage in both Turkish and Greek-Cypriot populations. No significant differences were found between identity categories based on the mean scores of psychological well-being, state anxiety and trait anxiety. On both state and trait anxiety scales, Turkish-Cypriot participants scored significantly higher than Greek-Cypriot participants. In addition, in the whole sample, there was a negative correlation between normative identity style and state anxiety and a positive correlation between diffused identity styles and trait anxiety. Moreover, in the interviews both Turkish-Cypriot and Greek-Cypriot participants reported to be experiencing identity-related stress.