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There are two main goals we hope to accomplish in this manuscript. First, we make a case for the value and methods of theory analysis, including the use of modularization. This is a technique that sharpens and simplifies theories so as to facilitate integrations across smaller theoretical units or modules. Second, we apply these methods to identity theory. This theory has a long history, an active contemporary research agenda, and promising implications for bridging micro and macro sociologies. Our approach is to develop a reformulation and modularization of identity theory in light of eight desirable properties of sound theory: internal consistency, unambivalence, communicability, abstractness, generality, precision, parsimony and conditionality. The reformulated theory provides two core modules that can be connected to other theories having intersecting terms or propositions.