This study examines the portrayal of multiculturalism in two works of German youth literature, Rafik Schami's Erzähler der Nacht (1989) and Aygen-Sibel Çelik's Seidenhaar (2007). The paper first provides an overview of the origin of the concept in German political and social discussions, background on literature by foreign-born authors, as well as an overview of children and youth literature, and its role in the socialization of youth. Next, it outlines the objective of this study and the background of the authors, novels and selection criteria. The paper then presents an analysis of both novels and discusses how each text constructs multicultural identities. Using the analysis, the paper concludes that youth literature plays an important role in breaking down stereotypes.