How family, school, and social background contribute to the self-identity and subsequent self-concept and self-esteem of highly gifted individuals may be related to whether or not they eventually self-actualize. The author examined factors that possibly relate to the development of individuals who are self-actualized; and which, if any of these factors, are predictors of highly principled moral reasoning development. Forty-one case studies were analyzed using characteristics of emotional and moral reasoning stages outlined by Erikson, Maslow, Dabrowski, Kohlberg, and Rest. Findings indicate that self-actualization that follows inner transformation is highly correlated with advanced levels of moral reasoning. Such people are not necessarily happier or more successful in careers than subjects who attain lower emotional and moral reasoning growth. There was a significant correlation between scores on Rest's Defining Issues Test (DIT) and Dabrowski's and Kohlberg's stages of development. New terms for the study, Searcher and Nonsearcher, appeared to correlate with developmental levels, with Searchers being more likely to eventually self-actualize. Evidence exists that people can become Searchers. Emotional, physical, or sexual abuse in childhood was highly related to both lower and higher DIT scores and Dabrowski levels among highly gifted adults. Those who overcame persistent bitterness over abuse were more likely to become Searchers and eventually self-actualize. Those who do not experience inner transformation but are “good people” and career self-actualizers are generally in the Conventional (Kohlberg) or Stereotypical (Dabrowski) levels of development. Finally, subjects' perceptions that someone significant to them cared about them or respected them emerged as a significant positive factor in those who eventually self-actualized.