The narrative review examines how school-based team sports catalyze holistic student wellness, leveraging their inherent nature and addressing barriers to inclusivity. Utilizing the holistic wellness framework—which encompasses physical, emotional, intellectual, social, spiritual, and occupational dimensions—the review evaluates the multifaceted effects of these sports on student well-being. Supported by wellness models like Dr. Bill Hettler’s Six Dimensions of Wellness and various research studies, the framework highlights the interconnectedness of these areas in achieving overall well-being. School-based team sports promote discipline, teamwork, physical fitness, and social interaction while fostering skill development, ethical behavior, and emotional resilience. These elements, collectively, may support the holistic development of students, enhancing their overall health and success. The methodological approach of this review involves a synthesis of empirical research, systematic reviews, and meta-analyses from the past two decades (2004–2024), sourced from databases such as PubMed, EBSCO (EDS), and Google Scholar. Key findings include enhanced cardiovascular fitness, emotional resilience, cognitive performance, social skills, spiritual fulfillment, and career readiness awareness. The review highlights the necessity of integrating team sports into educational curricula to promote well-rounded student development and proposes strategies to overcome socioeconomic, cultural, and structural barriers to participation. Future research should focus on longitudinal studies to examine the long-term effects of team sports and explore the potential of digital technologies and artificial intelligence (AI) in enhancing these benefits.