As Julian Huxley (Evolution: The modern synthesis. Allen & Unwin Australia, 1974) observed in his seminal work Evolution: The Modern Synthesis, the primary trajectory of human evolution has shifted from being predominantly organic to psychosocial. Psychosocial evolution places greater emphasis on human progress, suggesting that the future of humanity lies in progressive evolution—guided by deliberate purpose and a sense of happiness. Happiness, while often regarded as a universal state of mind, is a concept that remains complex and ambiguous. This complexity has led to differing conceptualizations of happiness across various philosophical traditions. Positive psychology and Indian psychology, in particular, offer contrasting yet complementary perspectives on this topic. Positive psychology, grounded in a predominantly materialistic worldview, emphasizes self-cultivation, psychological intensification, and the development of human virtues. In contrast, the Vedantic framework of Indian psychology views happiness, or ānanda (bliss), as the intrinsic quality of the self. This approach focuses on holistic individual emancipation and the attainment of subjective well-being through spiritual realization and harmony with one’s inner nature. In this theoretical study, we explore the intersection between positive psychology and Indian psychology in the context of happiness, highlighting their shared insights and unique contributions to understanding human flourishing. The objective of this study is to emphasizing the concept of happiness by examining the correlation between the empirically studied phenomena from positive psychology and the self-realization-oriented wisdom of Vedantic philosophy. Also, it explore the distinction between sukha (dualistic and temporary pleasures) and ānanda (non-dual and enduring bliss) in the context of happiness. Such an incorporation of Vedantic insights into the concept of happiness enriches its understanding by adopting a holistic approach that bridges the materialistic worldview of positive psychology with the spiritual insights of Indian psychology. However, this study strives for a balanced perspective, neither overemphasizing nor undervaluing the contributions of these two distinct schools of thought. Instead, it fosters a meaningful integration between them, presenting significant potential for reimagining and crafting innovative interventions aimed at enhancing human well-being.