Language functions not only as a medium of communication but also as a vital marker of social identity and cultural affiliation. Among Generation Z, the adoption of loanwords has become a prominent linguistic phenomenon, reflecting the complex interplay between global cultural flows and local identity construction. This study investigates the trend of loanwords in the language practices of Indonesian Generation Z, focusing on how borrowed terms are integrated into everyday speech and social media discourse as expressions of style, identity, and community belonging. Utilizing a qualitative descriptive method, this research combines literature review and observations from various social media platforms, including Facebook, Instagram, TikTok, and Twitter. The findings reveal that Indonesian Gen Z actively incorporates loanwords from English, Korean, Japanese, and other languages, often transforming them through processes such as blending, clipping, and spelling modifications to fit local linguistic patterns. Words like healing, vibes, and oppa exemplify how loanwords acquire new cultural nuances and social functions in Indonesian contexts. Moreover, these linguistic choices serve as tools for signaling group membership, projecting cosmopolitan identities, and navigating digital social spaces. The study concludes that loanwords among Indonesian Generation Z are not merely linguistic borrowings but dynamic elements that contribute significantly to personal expression, social identity, and cultural interconnectedness in the digital age.