This study explores anxiety and depression among young individuals in Kosovo, considering socio-political and economic influences. Introducing Positive Youth Development (PYD) as a framework, the study explores its integration with Internal Cohesion Psychotherapy (ICP) to address youth mental health challenges. Empirical evidence underscores ICP’s positive impact on mental health outcomes, emphasizing developmental assets. Thematic analysis of participant narratives reveals six key themes, showcasing ICP’s transformative nature, the critical role of social support networks, values and beliefs, reflections on personal growth, and therapy’s extended impact on relationships. Participants’ stories highlight ICP’s profound influence on personal growth, social relationships, and mental health. The study examines internal and external assets, emphasizing social networks, values, beliefs, and cultural competence. Insights into ICP’s intrapersonal and professional systems reveal developmental assets fostering growth, motivation, and engagement. External assets like empowerment, safety, and service to others, alongside internal assets like commitment to learning, positive values, integrity, and responsibility, contribute to an understanding of factors influencing Kosovo’s young population. In conclusion, the integration of PYD and ICP offers a powerful synergy to address mental health challenges, providing valuable insights into specific developmental assets crucial for optimizing interventions and promoting mental health among young Kosovars.