Purpose in life has emerged as an important notion in positive psychology. It is regarded as a factor that can contribute to any individual's wellbeing. Based on a review of the literature, the authors discuss key issues that pertain to purpose in life, including how the construct is defined and conceptualised, its importance in living a fulfilling life, and the development of purpose across the lifespan. Because of its potential to contribute to positive youth development, the authors also discuss how extant research findings can inform school guidance and counselling interventions for adolescents. The PATHS Program in Hong Kong is used as an example to illustrate how students can be helped to establish their purpose in life through the guidance curriculum.