Adolescent identity development is driven to a significant degree by peer interaction. However, when mental health conditions (MHC) or other crises separate teens from their peers, their identity development can be slowed or arrested. We developed a unique open studio intervention (OS-ID) that could facilitate identity development in teens recovering from MHC, and incorporated this intervention into a therapeutic day school catering to our target population. We utilized qualitative case study research to explore these students’ experiences. Over the 10-month period of our intervention, we saw positive changes in the participants’ identity development. Key elements in OS-ID include the therapists’ commitment to supported autonomy; the absence of participatory demands; the emphasis on creative process over product; the use of setting and materials to promote the healing process; the facilitators’ and participants’ witnessing the process; the privatization and protection of the participants’ creations; and the ubiquitous presence of non-threatening significant others. This OS-ID modality could be an effective mechanism for assisting socially isolated teens to manage their social anxiety, develop their identity, and transition back into their peer environments.