ABSTRACT This study investigates identity development in narratives of difficult experiences and associations with wellbeing in the transition to midlife. The narrative processes of emotional sequencing (i.e. emotional tone of how people frame their experiences: redemptive, neutral/vague, negative, and a combination of positive and negative) and positive and negative impact on the identity (i.e. how people perceive the impact of the narrated event) were examined in narratives about difficult experiences in early adulthood (Mage = 33.28, SD=0.54) and midlife (Mage = 38.62, SD =0.61). Results concerning emotional sequencing showed two typical patterns one of stability in neutral/vague sequencing, and another pattern of change from a combination of positive and negative to redemptive sequencing. Furthermore, positive and negative impact in early adulthood was associated with wellbeing in midlife. Findings in this study show that people who are neutral in their way of framing challenges maintain this outlook on life’s difficulties in the transition to midlife. The results also indicate that perceived negative impact of narrated events, and not only positive impact, in early adulthood has bearing on wellbeing during midlife.