“My illness eradicated my sense of self,” one individual with schizophrenia described, “and now I am engaged in the lifelong process of obtaining, maintaining, and slowly modifying my sense of who I am” (Anonymous, 1994). We argue that this lifelong challenge can be captured through narrative identity, a rich, well-established theoretical and empirical approach to studying the narrative self in personality and developmental psychology. In this paper, we systematically review the literature on narrative identity in psychosis, describe the fully formed narrative identity deficits observed in schizophrenia-spectrum disorders, propose a developmental model for how these deficits may emerge in adolescence and early adulthood, and suggest specific hypotheses and future directions for research in this area.