This qualitative research investigates the protagonist, Zeina's identity development in the novel, The American Granddaughter (2010), written by Inaam Kachachi in the backdrop of the US occupation of Iraq. The investigation borrows James E. Marcia's identity status theory, postulating four statuses of identity development—identity diffusion, identity foreclosure, identity moratorium, and identity achievement. The study delves into how the protagonist moves from one identity status to another, experiencing and exploring her relationship with her own self, her family, and acquaintances, eventually arriving at a greater self-recognition and identity integration. The study will help individuals going through similar identity issues to understand the dynamics of identity development and achieve higher autognition. it will also benefit literary critics and scholars aspiring to work in this literary paradigm by applying psychological theories to literary representations. The findings of the study will solidify the applicability of Marcia's theory as a lens to literary interpretation and hermeneutics.