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This chapter deals with a widely studied case, that is, Prato, a middle-sized city with rooted industrial traditions, in the Centre of Italy. Prato is a textile industrial district embedded in the so-called Third Italy—an area characterized by the presence of small firms spread throughout the territory, linked together in supply and subcontracting relationships—which, in the last twenty years, has undergone a profound transformation as a consequence of the crisis of textile and immigration, leading to the formation of a large Chinese community. The related changes brought with them problems of social cohesion and sustainable development. The authors address these issues by analyzing both academic and public discourses on Prato. Their basic idea is that common stereotypes act as drivers of a public discourse that prevents the city to re-negotiate its identity. The analysis concludes that different forms of hybridization—particularly cultural hybridization—are occurring, which would need further investigations.