This paper aims to analyse differentiated integration in the increasingly politicized Union from the identity point of view, focusing on the possible positive and negative scenarios of DI. The aim is to demonstrate that the spread of differentiated integration fundamentally changes the meaning and the value of membership in the community, consequently as the European Union becomes an increasingly differentiated political community, the collective identity formation of EU citizens’ changes fundamentally. Further, it is argued that depending upon the type of DI initiated and implemented, and the type of answer provided for the “otherness” questions, there is a threat that the new, differentiated model of integration would entrap the achievements of integration.