This research synthesizes available evidence between the years 2015 and 2025 on the effect of war-related stress on identity development in adolescents and young adults living in conflict-ridden areas and in refugee settings, including in the Middle East (Gaza, Syria) and Ukraine, as well as Israel and refugee camps worldwide. Using a secondary data analysis approach, thematic synthesis was performed across peer-reviewed studies, dissertations, and institutional reports focusing on young people aged 12-25, who were exposed to violence or forced migration. Findings show that chronic exposure to experiences of war leads to a significant increase in the development of post-traumatic stress disorder, anxiety, depression, and emotional dysregulation, which affects capacities that are essential for identity development. The study concludes on the proposition that identity development in youth affected by war, interacting with effects of trauma, sociocultural context, and resilience, is rather dynamic. Implications include providing culturally based, developmentally informed interventions.