Erikson's theory outlines 8 stages of human development, with the 5th stage being identity vs. role confusion occurring during adolescence. During this stage, adolescents face many challenges as they search for themselves and their place in the world. Some of the key challenges include achieving independence from parents while still under their control, developing constructive use of free time, navigating new sexual and peer relationships, making important vocational choices, and developing a sense of personal identity and life goals.