This article examines the impact of the host society’s social characteristics on second-generation immigrants’ understanding of their national and ethnic identities. Specifically, we studied how second-generation Iranians in Sweden identify themselves with Iranian society, with the Iranian ethnic group in Sweden, and/or with Swedish society, and then we compared second-generation Iranians in Sweden with those in the USA concerning the issue in question. To gather the data in Sweden, we used semi-structured e-mail interviews with 15 young people of Iranian background. We used secondary data to compare our results with those obtained in the USA. When comparing the results of this study with those obtained in the USA, we did not find the identity tensions and crisis reported by research on second-generation Iranians in the USA in members of the same generation in Sweden. Some policy recommendations were suggested.