This article provides a theoretical review of how within notions of self-determination theory adolescents’ use of social media can contribute to both the satisfaction and/or frustration of their basic psychological needs and thus contribute to (or impede) their attainment of key developmental goals in adolescence, such as identity formation and peer affiliation, and how these may impact their overall well-being. In this way, this work provides important insights into the motivational (i.e., basic psychological need satisfaction) and developmental (i.e., identity formation and peer affiliation) processes underlying youths’ social media engagement and has important implications for future research, as well as the development of intervention and prevention efforts targeting youth experiencing negative outcomes related to their social media engagement.