This article explores the relationship between creativity through the arts in education and considers the development of a grounded and positive sense of identity. It acknowledges that creativity in itself does not have any particular moral value, and seeks to problematise the assumed relationship between creativity and positive development. It then examines, through four cases studies, ways in which drama has been used creatively to construct positive and effective, albeit particular, understandings of identity. Working through ways of interacting cross-culturally, and addressing personal and social issues in a colonised society, it offers a challenge for education. Through discussion and analysis of the case studies and the values they expose, it examines the implications of creativity and the value laden nature of concepts of identity for classroom teaching.