The emerging field of positive psychology has pledged to improve the mental health of American adolescents. Yet, without a principle-based conceptual foundation to guide its study of optimal youth functioning, positive psychology will ultimately fail to keep its promise. This paper suggests that the principles of Mind, Thought and Consciousness can provide positive psychology with a clearer understanding of optimal psychological functioning, serve as a unifying conceptual framework to guide its proposed mission, and lead to a true breakthrough in adolescent mental health. It first describes how the logic of these principles accounts for all subjective human experience. It then demonstrates how optimal mental health is generated, and how it can be maintained irrespective of present or past circumstances. Finally, it discusses how several contemporary models of positive psychology (i.e., Csikszentmihalyi's flow. Seligman's learned optimism, Goleman's emotional intelligence, and Buss's evolutionary perspective) can be simplified and clarified using the logic of the above three principles.