As social status and peer feedback-seeking are developmentally salient aspects of adolescence, social media has become a highly relevant arena for youth to explore their identities and social selves. Contrary to popular notions that social media inherently decreases opportunities to meaningfully connect with others “in real life,” this chapter conceptualizes how youth digital wellbeing can be intricately tied to social connectedness in both adaptive and maladaptive ways. Studies using different methodologies report mixed findings: social media can either increase wellbeing or contribute to poor wellbeing, depending on context. Studies have begun to move beyond primarily measuring the quantity of time spent, using more longitudinal and ecological momentary-sampling designs as well as focusing more on specific online behaviors that help or hinder youth wellbeing. Qualitative research has revealed that social media can provide critically important sources of connection for youth with marginalized identities; more quantitative research is needed to further investigate mechanisms. Rather than focus exclusively on risk prevention, research on social media use can instead be at the forefront of innovations that promote wellbeing and heightened social connectedness. We review the current state of research, including limitations, future directions, and recommendations for key stakeholders, including clinicians, educators, policymakers, and industry.