<P>In the current ever changing world ¿ the liquid modernity ¿ the most pressing psychological challenge to all of us is to create and maintain a personal balance between mental stability and mental flexibility. In <I>Transformative Learning and Identity </I>Knud Illeris, one of the leading thinkers on the way people learn, explores, updates and re-defines the concept and understanding of transformative learning while linking<I></I>the concept of transformative learning to the concept of identity. He thoroughly discusses what transformative learning is or could be in a broader learning theoretical perspective, including various concepts of learning by change, as opposed to learning by addition, and ends up with a new, short and distinct definition. </P><P></P><P>He also explores and discusses the concept of identity and presents a general model depicting the complexity of identities today. Building on the work of Mezirow, various perspectives of transformative learning are analysed and