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The aim of the current research was to investigate the role of positive psychological capital (PsyCap) in prediction of positive and negative emotions and subjective wellbeing (SWB) among 616 school adolescents. PsyCap scale developed for adolescents (Afzal, 2013), PANAS (Watson, Clark, & Tellegen 1988), and Well-being Inventory (Fatima, 2004) were used to measure the constructs. Correlational analysis demonstrated the significant relationships among all variables. Multiple regression demonstrated PsyCap as a positive predictor of positive emotions and inverse predictor of negative emotions. Further, multiple regression analysis portrayed that resilience, hope and optimism were positive predictors of SWB. Suggestions for further empirical research and practical implications are discussed too.