Religious education (RE) is under serious political and professional pressure to justify its existence and, for some, positive psychology seems to offer a more compelling route to well-being. In response, this article establishes a case for the inherent value of the subject whilst showing that the well-being of pupils, in the broader sense of human flourishing that engages us with ideas of meaning and purpose, is an integral part of the aims of RE. The article defends this role by establishing a view of happiness as concerned with the transcendent, and well-being arising from an interest in meaning and purpose in life. It concludes that RE can learn from positive psychology without being subservient to it in order to play a significant part in a worthwhile education. (Contains 1 figure.)