The objectives of this research are to examine the following: (1) the effect of positive psychology on stress management; (2) the ways in which positive psychology can aid in the management of depression; (3) the relationship between academic performance and stress management; (4) the relationship between academic performance and the management of depression; (5) the effect of positive psychology on academic achievement; (6) the indirect relationship between academic performance and stress management; and (7) the indirect relationship between academic performance and the prevention of depression. Supporting students' psychological well-being and academic success requires a comprehensive approach, which this research highlights by focusing on students' individual internal resources and effective stress management. The results of this study can help colleges and universities enhance counseling programs based on positive psychology and better integrate mental health promotion into existing courses. The researcher determined the total number of surveys sent out to 230 students using predetermined criteria and randomly selected them. Convergent validity tests were conducted for approximately 19 indicators of each variable, including exogenous, intervening, and endogenous factors. The SPSS tests that were run before the ANOVA were the following: correlation, t-test, F-test, and coefficient test. After applying inferential analysis with SPSS to the empirical research model, the researcher came to the conclusion that the results were statistically significant. When students, teachers, and administrators work together, we can create a school environment that is safe and supportive, which in turn improves students' health, happiness, and academic performance.