The environment significantly shapes psychological experiences, influencing thoughts, behaviors, and well-being. This chapter explores the dynamic interaction between psychology and the environment, emphasizing both positive and negative impacts. Research from environmental psychology highlights nature’s restorative power. The Theory of Attention Restoration, updated by Kaplan and Kaplan, suggests natural settings reduce mental fatigue and enhance focus. More recent studies demonstrate that exposure to nature alleviates stress and improves mood. Similarly, it was found that natural environments mitigate depression and boost life satisfaction. Conversely, environmental stressors like noise pollution increase anxiety and diminish well-being. Studies by Evans et al. (Environ Behav 52(2):185–227, 2020 1) reveal that poor housing conditions elevate stress and depression. The concept of biophilia, emphasized by Kellert and colleagues, highlights humans’ inherent connection to nature and promotes well-being when natural elements are integrated into built environments. Real-world examples, such as findings on noise pollution by Gidlow and team and research on green spaces by Kondo and collaborators, illustrate these effects [2]. Additionally, the emerging field of ecotherapy leverages nature’s healing power to enhance mental health, with practices like forest bathing and wilderness therapy showing promising results. This advocates for designing environments that nurture human well-being, integrating nature into daily life, and building environments to foster a healthier, more resilient society. Integrating green spaces and natural elements is crucial in urban planning for the improvement of mental health and quality of life.