<p>This systematic review examines the association between teachers’ cognitive and psychological capacities and their well-being, as well as the implications for their professional effectiveness. Following the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) methodology, relevant articles were identified across four databases in Arabic and English, yielding a final sample of 55 studies comprising K-12 teachers. The review revealed that the most frequently utilized theoretical frameworks were Social Cognitive Theory (<i>n</i> = 13), Self-Determination Theory (<i>n</i> = 9), and Job Demands-Resources Theory (<i>n</i> = 8). Teachers’ cognitive and psychological capacities were identified as influencing various dimensions of well-being, including overall well-being (<i>n</i> = 14), psychological well-being (<i>n</i> = 8), occupational well-being (<i>n</i> = 4), job satisfaction (<i>n</i> = 9), and quality of work-life (<i>n</i> = 6). Moreover, teachers supported by cognitive and psychological capacities were positively associated with various indicators of professional effectiveness, such as work engagement, work ability, motivation to teach, innovative teaching practices, and creative agency. These findings highlight the importance of nurturing teachers’ cognitive and psychological resources to improve their well-being and professional performance, which in turn contributes to improved student achievements and overall educational outcomes. The results provide valuable insights for educational policymakers and those involved in teacher professional development initiatives.</p>