High education has witnessed an increasing presence of Chinese international students. However, how these students develop their identity in a new academic, social and cultural system is not well understood. This study investigated the lived experiences of identity development of Chinese graduate students in the United States. The study found that the majority of students came with a strong student identity that conflated with personal identity and that they continued to develop their identity in the new environment. They encountered five significant contexts that wove together to form an overall developmental environment, which, along with their prior identity, determined the range, variety, and quality of interactions that they had. As a result, they developed multiple dimensions of identity through a bidirectional movement of identity differentiation and integration. This study sheds light for researchers and scholars in student development and for educators, counselors, advisors, administrators and faculty who work with Chinese students. It is also informative for the general public, especially people who engage in international and cross-cultural exchange.