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Abstract This study investigates the identity processes among second‐generation Afghans living in Iran and evaluates the relevance of the social identity model of social change (SIMIC) to understand their unique experiences. We conducted 23 in‐depth interviews and analysed the data using grounded theory method. The findings show that Afghan youths' efforts towards integration often fail due to unfavourable responses from the host society, compounded by the perceived discriminatory environment. In addition, in line with SIMIC, the results show that participants lacks socio‐psychological resources linked to previous group membership and this leads to poorer mental health. Finally, we explore the engagement in de‐labelling, the formation of purposeful social bonds, and the development of a cosmopolitan identity among our participants as the main identity‐oriented mechanisms to navigate the challenges of being rejected by both one's and the host community.
Keshavarzi et al. (Sun,) studied this question.