The psychoactive substance known as ayahuasca has long been identified with Amazonian shamanism and traditional medicine. Over the last two decades its use has spread outside this region to urban populations in different parts of the world. This paper examines the adoption of the ritual use of this beverage by the Guarani Indians along the southern coast of Brazil. We argue that this process is related to the growing politics of identity of Brazilian indigenous peoples as well as to public policies that promote cultural diversity. In the case analyzed here, the adoption of ayahuasca is part of an ongoing cultural revitalization in activities related to shamanism, health and education as articulated by the specific desires and actions of one Guarani village and its leading family.