This presentation concerns the central importance of cultural competence in psychotherapy and supervision. The presenter will explore the role of sociocultural context in psychotherapy, focusing on a framework for the systematic inclusion of cultural competence as a core value and ethical principle in psychodynamic psychotherapy and supervision. In applying this framework, there will be a special emphasis on exploring identity among immigrants and the 2nd generation in U.S. society. The presenter will explore the role of discrimination and stereotyping, the experience of multiple identities, and marginalization and privilege among racial minority immigrant-origin people. She will underscore the importance of recognizing unconscious processes underlying identifications concerning race and gender in particular, and the sociopolitical contexts associated with these identifications. She will provide clinical vignettes that will help to foster discussion with audience members, focusing on relevant ethical and clinical dilemmas that arise in the therapeutic relationship.