<p>Authentic inner compass (AIC), defined as the experience of having a set of clear values, goals, and interests that inform people about what they truly value, is an essential component of individual’s need for autonomy. This research examined the developmental trajectories of AIC across the college years and tested how the initial levels and change rates of AIC contributed to the psychological functioning among Chinese college students. Participants were 998 students (63.4% female; M_age = 18.60&#xa0;years at Wave 1) from seven Chinese public universities who reported annually on their AIC through four waves of investigation across their freshman to senior years in college. We also assessed their psychological functioning repeatedly in their freshman and senior years. Based on latent growth model, we found that students with higher initial levels or faster increasing (or slower decreasing) rates of AIC obtained greater increases in subjective well-being as well as greater decreases in internalizing problems over time. These results highlight the significance of developing a sense of AIC to bolster psychological functioning and provide empirical evidence for targeted interventions among college students.</p>