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This study investigated ethnic-racial identity developmental processes (i.e., exploration and resolution) as pathways for adolescents to develop global bicultural competence, or the ability to meet heritage and host cultural demands. The sample included 749 U.S. Mexican-origin youth (30% Mexico-born; 51% male) followed from early-to-late adolescence (Mage = 12.79 to 17.38 years). Longitudinal structural equation analyses revealed that youth’s sequential engagement in ethnic-racial identity exploration and resolution (from early-to-middle adolescence) promoted global bicultural competence in late adolescence. Findings highlight the benefits of achieving clarity about one’s ethnic-racial identity via self-exploration efforts for adolescents’ ability to respond effectively to bicultural demands. This study advances mechanisms via which ethnic-racial identity development may support youth adaptation to multiple cultural systems.