Effective regulation of both positive and negative emotions plays a pivotal role in young children's emotional and cognitive development and later academic achievement. A compelling body of evidence has highlighted the symbiotic relationship between emotion regulation competencies and young children's emotional health, in particular their mood and self-esteem, the two essential components of emotional wellbeing. However, the latest neuroscientific research has confirmed the powerful role of emotions on children's cognitive mastery, indicating that emotions can either facilitate or impede children's learning process. These research findings point to the critical role of emotion regulation on young children's readiness for school, asserting that children with developed emotion regulation skills are able to focus and maintain their attention on the learning task and follow the teachers' instructions, which are key contributors to later academic success. Current and emerging research into this field has the potential to advise and guide both education policy and the directions of young children's upbringing and education in their formative years. As part of a PhD study, this article will outline findings of a critical analysis of the literature addressing the relationship between children's emotion regulation skills, their emotional health and later educational achievement.