First- and final-year undergraduate students have unique transition issues. To support both the transition of first-year students into the program, and the transition of third-year students out of the program and into the workforce or further study, a face-to-face peer mentoring program was embedded into the first-year psychology curricula at RMIT University, Melbourne, Australia. The 34 peer mentors, third-year students taking a course on mentoring and career preparation, worked in pairs with small groups of first-year students (N = 231) in class time to help them develop study skills that underpin the first-year assessment tasks. This article reports on a peer mentoring program designed to develop and consolidate psychological literacies of both first- and third-year students. Comparing pre-and post-tests for first-year students, there was a significant increase in self-ratings across 8 of the 9 ability areas used to measure psychological literacy. In contrast, third-year mentors only showed significant change in the ability to understand basic psychological concepts. Correlational data reveal, for mentees, final course grades were significantly correlated with domain-specific psychological literacy, comprising knowledge and understanding of basic psychological concepts, scientific research practices, application of psychology, and ethics; for mentors, final course grades were significantly correlated with general psychological literacy, comprising cultural competence, critical thinking, problem solving, communication, and self-awareness skills. While first-year students indicated an overall positive experience with the mentoring program, the third-year mentors showed strong support for the program. The key implications are discussed.