Introduction Positive psychology is a concept that refers to a variety of strategies that encourage people to focus on their selves. In education, it implies greater attention to students’ emotions, attitudes, and ideas, which is based on the basics of humanistic psychology. The paramount goal of positive psychology is to ensure the optimal functioning of people and advance their well-being (Kaiser et al., 2020). It also posits on the assumption that only students who are ready to receive assistance are more likely to succeed with their academic performance. It is important to understand the impact of positive psychology on students’ self to clarify the current challenges and opportunities for applying positive thinking in education.   * Problem: The current conceptions of self in education cannot meet the needs and preferences of students, which limit their potential to develop as individuals. Students note that education is not interesting, while teachers pay attention to curricula instead of students’ unique selves.   * Method: A critical literature review is used to discuss the above problem and make conclusions about the future of educational psychology.   * Thesis: Positive psychology improves student performance since it focuses on their identity, mind, self-regulation, and enthusiasm about learning. Historical Timeline   * the late medieval period – the unit of a human life was recognized;   * 1500-1800 – the distinction between the outer and inner selves;   * Puritan society – self-consciousness and self-deception concerns;   * the Victorian era and the 20th century – problems revealed are self-knowing, self-creation, self-understanding, and the relation of self to society;   * early 20th century – compete self-knowledge denial and devaluation of self;   * Recent 20th century – uniqueness of personality and self-exploration are prioritized; there is a need to recognize one’s potential (Baumeister, 1987). Beginning with the Christian values and morals, the notion of fulfillment is closely associated with one’s individuality: “people are not people anymore, they are individuals” (Bekerman, & Zembylas, 2018a, p. 42) Discussion Inadequate perception of self in educational psychology The humanistic ideas of psychologists of the 20th century removed the concept of personhood from its social, cultural, and historical traditions. Instead, political and moral values were assigned a top priority, which gave the impulse to self-management and self-enhancement theories. Martin (2004) states that they cannot meet the needs of students since they are expected to function as effective citizens only. Little attention is paid to promoting the participation in socio-cultural contexts, and it limits the development of students. Therefore, there is a need to create a new understanding of the self, focusing on specific sets of cultural norms, traditions, and other components of personhood. Similar ideas are expressed by Vygotsky (1980), who claims that the development of personhood begins with the physical birth of a person and continues in terms of his or her developmental path. The views of Vygotsky (1980) and Martin (2004) are contrary to the majority of psychological approaches that pay more attention to the political environment compared to linguistic and relational contexts. Namely, the menti