The global pandemic has been associated with substantial elevation in mental health problems among emerging adults. In this study, we examined psychological symptoms in relation to perceived COVID-19 stress and disturbances with identity development (identity distress) among university students in Canada and in Spain during the second wave of the pandemic. Spanish students indicated greater identity distress than their Canadian counterpart, and they reported higher perceived COVID-19 stress. The predicted associations were supported among perceived COVID-19 stress, psychological symptoms, and identity distress for both groups, and psychological symptoms mediated the linkage between perceived COVID-19 stress and identity distress. These results underscore the enduring influence of psychological symptoms in relation to perceived COVID-19 stressors and identity development with implications for other serious contextual events and suggestions for student support and clinical intervention.