Psychologists within a positive psychology framework have proposed the existence of a set of psychological strengths that buffer against the development of psychopathology. To date, most research efforts in positive psychology have focused on adults. This longitudinal study tested the prediction that adolescents' judgments of life satisfaction moderate the influence of stressful life events on the subsequent development of psychopathological behavior. Using a sample of 816 middle and high school students, the study demonstrated support for the moderational model for externalizing behavior outcomes, but not internalizing behavior problems. Specifically, adolescents with positive life satisfaction (vs. those who were dissatisfied with their lives) were less likely to develop later externalizing behaviors in the face of stressful life events. The study also revealed that adolescent life satisfaction reports show moderate stability across a one-year time frame and independently predict subsequent externalizing behavior even while controlling for prior levels of externalizing behavior. Taken together, the findings offer preliminary support that life satisfaction operates as a protective psychological strength that provides a buffer against some effects of adverse life events in adolescence.