The thesis aims to describe the representation of lesbian characters, Liza and Annie, and identify the counterplot based on the lesbian representation in Nancy Garden‘s Annie on My Mind novel. Two main theories are employed in the field of queer studies, homosexual identity formation by Vivienne Cass and the counterplots of lesbian writing by Terry Castle that consist of dysphoric and euphoric counterplots, along with the involved intrinsic elements of literature in this study. This thesis used the qualitative research method and queer studies as the approach. The result shows the lesbian characters‘ journey of self-exploration in figuring out their sexual identity at adolescence. The development of these characters‘ sexuality is tracked with Cass‘ model of identity formation from identity confusion, identity comparison, identity tolerance, and identity acceptance, as well as identity pride in identity integration. Garden, as the author, represented her queer characters with so much complexity regarding self-awareness of their sexuality. The novel has dysphoric tendencies with threats of identity foreclosing from the characters involved. Although, the counterplot of the novel is enclosed in the final story‘s resolution and with the final of the story provides self-acceptance of these characters‘ sexuality so they can have a relationship together, making the story ends on a high note. Therefore, the counterplot that Garden presented in her book is euphoric.