In no less than twenty-five years’ span after its inception, positive psychology fascinated a wide range of scholars within and outside the field as well as featured prominently in popular media. The field, however, also happened to witness valid concerns levelled against it occasionally. Apart from other domains, it appears that positive psychology has particular appeal in education with its emphasis on fulfilling lives, and it seems to offer a promise of pleasure and accomplishment for all. Despite such apparent assurance, this new field of human strengths and virtues has something else to bring to the fore. Instead of stimulating emancipatory values and social change, it appears to maintain the status quo, keeping itself safely away from voices for social justice, equality, and democratisation from marginalised groups. Rather than making it a liberating enterprise, positive psychology seems to be trapped in the rhetoric of capitalism and consumerism where happiness is believed to be something to be sold. As a result, it appears that it privileges few and marginalises others. Such criticism is also applicable to the mainstream psychology more generally but suits much more timely when it comes to the unprecedented flourishing of ‘new’ science for happiness. Building on earlier critiques, the present chapter is divided into two broad sections. In the first section, the making of positive psychology is critiqued on ontological, epistemic, methodological and ideological grounds. In the second section, the educational implications of such critical engagement are discussed specific to the context of Indian education. In so doing, the challenges and possibilities of positive psychology are discussed with special reference to the Indian thought systems. It is argued that only after embarking upon the issues raised in the chapter, extending positive psychology to the Indian education scenario would adequately be evaluated.