This article presents a metamorphic model to describe the manifold role of narrative identity, a person's internal life story, across the course of mental illness and personal recovery. First, early adversity and negative co-authoring may contribute to the development of a fragile life story, which itself may combine with life stressors to increase the likelihood of mental illness. Second, mental illness may negatively impact the development of narrative identity, which in turn may exacerbate the devastating effects of mental illness on daily functioning. Finally, positive changes in narrative identity, as they are influenced by recovery stories of peers and the supportive co-authorship provided by mental health professionals, may contribute in powerful ways to the process of personal recovery. In sum, the metamorphic model demonstrates how narrative identity, as it is implicated in a variety of social spheres, shapes and is shaped by the course of mental illness and recovery. We also show how the model differs from other personality-oriented theories of psychopathology and how it may guide future research and interventions.