The research proposes a framework and system model for investigating mental model transformation toward individual peace. Broadly based on Indian knowledge system, a framework termed ‘desire life cycle’ is proposed and the corresponding causal, influencing, mediating, moderating variables and the reinforcing cum balancing loops are arrived at. To summarize, the external stimuli, interacting with the mental model of a particular conditioning, and its base elements such as ego, temptation, and ignorance of natural law, gives rise to the construct, intent or desire. How this primal antecedent leads to subsequent residual states of mind, namely anger, anxiety, guile, and worry, out of interactions with the conditioning, is explained via path-dependent reinforcing causal loops. Subsequently, to break this recurrent pattern, how the balancing causal loops of meditative-introspective states, self-assertion, and self-regulation can act as prescriptions is analyzed. Out of these loops meditative loop of electro-encephalogram consciousness states of alpha and theta, is seen as a primary influencer. When reinforced with introspective loop, it produces an accelerating change toward individual peace over time. The operationalization of the model involves longitudinal sampling with instruments such as qualitative interviews, in experimental and control groups that follow meditative-introspective practices. The conceptual framework can assist mindfulness practitioners in designing custom prescriptive-interventional loops of specific durations to enable self-peace, well-being and happiness. Contribution to happiness theory includes the development of ‘desire life cycle framework’ and the system dynamic modeling of the same with new constructs, and reinforcement-balancing loops.