When examining racial and ethnic identity, transracial adoptees are a relevant population to study because they are confronted with the paradox of having grown up in a white family and community, typically having been treated as an honorary white (Tuan 1998), but being perceived by others outside of these milieus as an ethnic and racial minority (Lee 2003). The circumstances of Chinese adoptees raise the following questions: 1) what factors influence the development of a racial-ethnic identity, 2) how do adoptees decide whether or not to pursue ethnic exploration, and 3) how do adoptees negotiate identity conflict when external perceptions are inconsistent with their internalized self-perceptions? Through the narratives of 11 Chinese adoptees, the present study explores the lived experiences of Chinese adoptees in their identity development, the identity conflicts many encounter, and how adoptees navigate such conflict. Findings indicate that how adoptees dealt with this conflict was influenced by their early exposure to other Asians and Chinese adoptees and their awareness of being Chinese growing up. As young adults, participants either distanced themselves from other Asians or explored their ethnic identity, which led to an increased recognition of their Chinese identity. Exploration included taking classes or studying abroad, increased interactions with Asians or people of color, or by discussing racial differences with friends.