<p>Challenges like limited social and economic resources might hinder positive development among adolescents in poverty-stricken rural areas of China. Few studies have revealed the underlying mechanisms of healthy development of adolescents in the school context in non-western societies. This study investigated the association between students’ perception of school climate and their positive youth development (PYD) attributes based on the relational-developmental-systems theory. It also examined the mediating effect of intentional self-regulation on this association. Our data (<i>N</i> = 718, average age = 13.3) were derived from one junior high school in Jinzhai County, Anhui province, and another in Enshi City, Hubei province, which are former national-level poverty-stricken counties in China. Path analyses with SEM models were applied to address the research questions. We found a positive perception of school climate (<i>β</i> = 0.47) and a high level of intentional self-regulation (<i>β</i> = 0.48) significantly boost PYD, with intentional self-regulation skills partially mediating this relationship (<i>β</i> = 0.18). Specifically, the school climate factors of teacher–student and student–student relationships, school activity involvement, and fairness of rules were significantly related to PYD (with <i>β</i> of 0.11, 0.19, 0.10, and 0.12, respectively); the latter three were also positively associated with intentional self-regulation (with <i>β</i> of 0.12, 0.13, and 0.15, respectively). This research provides insights for practitioners to adopt a broader approach by establishing a positive school climate and emphasizes developing individual intentional self-regulation skills to improve positive development among students. It also highlights the importance of governments in improving current school and educational policies in poverty-stricken counties in China.</p>