Contemporary Indian diasporic literature frequently explores the complex relationship between memory, trauma, and identity. Among the prominent voices in this literary tradition, Bharati Mukherjee occupies a distinctive place for her nuanced portrayal of immigrant experiences and the psychological transformation of individuals navigating between cultures. Her works examine how personal memories and collective histories shape identity formation, especially in the context of displacement, migration, and cultural negotiation. This paper investigates the themes of memory, trauma, and the quest for identity in Mukherjee’s major novels and short stories, particularly Jasmine, The Tiger's Daughter, Desirable Daughters, and The Middleman and Other Stories. The study argues that Mukherjee presents trauma not merely as a source of suffering but also as a catalyst for transformation and reinvention. Through fragmented memories and experiences of cultural dislocation, her characters engage in a continuous search for belonging and self-definition. The paper also examines how Mukherjee’s narratives reflect the larger realities of postcolonial migration and diasporic identity formation. By exploring the interplay between personal memory, cultural trauma, and identity reconstruction, this study highlights Mukherjee’s contribution to contemporary Indian and diasporic literature. The analysis demonstrates that memory serves as both a burden and a resource, enabling characters to confront trauma and reconstruct their identities within new cultural landscapes.