Little research to date has taken a positive psychology perspective on yoga, yet their mutual focus on promoting optimal and holistic health makes this linkage obvious. This chapter takes a positive psychology perspective to illuminate relevant potential pathways through which yoga influences stress. After reviewing the role of stress in health and the influences of yoga on stress, we describe the potential utility of a positive psychology approach to understanding the mechanisms through which yoga may affect stress. We then review the evidence linking yoga with nine specific positive-psychology-related constructs that may account for its salutary effects on stress: physical health/fitness, positive affect, mindfulness, self-compassion, spirituality, social connection, self-esteem/self-confidence, interoceptive awareness/body consciousness, and self-control/emotional regulation. We conclude with potential intervention implications and directions for future research.