Abstract Macao's recent development in economy, society, tourism, and culture and the closer connection with the world have drawn much attention both locally and internationally. Under the influence of globalization, the city has entered a new era. In order to cope with the drastic development and connect with the world, a local week-daily English newspaper, The Macau Post Daily (TMPD), was first published in 2004 to provide news and views on the city. The news media have been studied for a long time as a window into various social conditions; in this thesis, with the aim to study the process of Macao's identity construction in a time of change, the articles in TMPD were studied. Halliday's Systemic-functional Grammar and Fairclough's Three-dimensional Framework were employed as the working theories. A critical discourse analysis on TMPD articles shows that Macao's identity is constructed as a rising multi-faceted city in good ties with China is realized in the newspaper. Key words: Macao, ideology, identity, media discourse, critical discourse analysis