Identity formation, a process of prime significance for youth is an essential prerequisite for further emotional and social development into an adult. In this process, a role of crucial importance is assigned to the family. Clinical observation as well as empirical research validate such an emphasis. Present investigation examines identity achievement and family functioning relationship utilizing a sample of north Indian student youth. Information about the family unit and communication with each parent is obtained. Identity achievement is found as non-linearly related to family cohesion and adaptability. It is significantly positively related to openness but negatively to problems in communication. Findings emphasize the importance of understanding youth and identity in psychological terms, with family as the locus of the growth-context. Further research utilizing a variety of populations, cultures, and contexts may provide valuable information to validate and/or revise this focus. Results are discussed with respect to their cross-cultural implications.