The purpose of this essay is to analyze how loss affects the identity of the main characters in Toni Morrison’s Sula. An examination of the African-American community in Sula reveals a history of collective loss, both material and non-material, which limits the identity formation of the individual. This burden challenges the protagonists of the novel, Sula and Nel, as they come of age in the 1920s and continues to trouble them throughout their lives. By first defining loss and identity and then examining how loss affects identity in the community, family and individual, this paper will argue that although loss can limit the individual, it can also act as a catalyst for personal growth. Furthermore, I will show that despite the fact that Sula and Nel react differently to loss they both gain a sense of selfhood in the end.