In Grimms' Fairy Tales, identity is often explored through the concept of magical transformation. Sometimes, this motif is more symbolic than literal when applied to a character: think of the miller's daughter in "Rumpelstiltskin" who is told to spin straw into gold, an act which is a reflection of how her social station changes from peasant to queen over the course of the story. The inner nature of a character is often reflected in their outward appearance by the end of a story: either an ugly creature turns handsome to mirror their inner nobility and goodness, or cruel, selfish people become more monstrous.

The most obvious example of this theme can be found in "The Frog Prince" and "Hans My Hedgehog." In both of these stories, a young man is trapped in the form of an animal, only to be transformed into a handsome human being at the end. It is interesting to note that neither the Frog Prince nor Hans becomes human due to anything they do or any major internal transformation (indeed, both are static characters, who never have to change their ideas, beliefs, or behavior), but due to the behavior of the princess each marries. They each need someone else to recognize their worth despite their appearances—notably, a member of royalty and a member of the opposite sex. Hence, identity is less linked to one's inner life and more to the recognition of one's worth from society. Identity is linked to class, marriage, and the public sphere above all else.