In this article, we aim at theoretical specification and integration of mechanisms proposed within the Social Identity Approach to Health and Well‐being. We differentiate group‐level and individual‐level effects of shared social identity by distinguishing three different aspects: individual identification, group identification, and individually perceived group identification. We discuss specific group‐level mechanisms (i.e., mutual social support and collective self‐efficacy) and individual level‐mechanisms (i.e., attribution and appraisal processes regarding stressors and resources) for each of the three aspects. A core conclusion is that the positive effects of shared social identity on health and well‐being crucially depend on its close relationship with social support, and that although social support is an interindividual phenomenon, it is intraindividual mechanisms—attribution and appraisal—that shape the psychological partnership between social identity and social support. Therefore, we put special emphasis on cross‐level interactions between group‐ and individual‐level mechanisms, which have been widely neglected in earlier research.