As in other countries with a history of strong immigration and with multicultural policies, in Australia there has been a developing interest in the psychological processes of immigration. However, to date, httle empirical research in this area has been reported, and none pertaining to Latin American immigrants. The present exploratory study focused upon psychological experiences among 28 families of Latin American origin living in Melbourne, Victoria, with particular attention to the experience of young people in such families. The study explored potential links between the development of ego identity of the young people, perceptions of parents' level of acculturation and perceptions of family functioning. It was conducted in two phases, employing complementary quantitative and qualitative methodologies.