Psychological well-being is a multidimensional concept to which individuals carry out their psychological functions positively. One of the factors that influence psychological well-being is forgiveness. Teenagers who have the ability to forgive things that hurt their feeling can have a prosperous psychological impact. The purpose of this article is to find out how forgiveness affects adolescent psychological well-being. The method used in this article is a literature review by using research journals published between 2013 and 2018 as the criteria of the article. Journal articles are collected from various websites, including ResearchGate, EBSCOhost, google scholar, and academia.edu. Based on the literature, the results indicated that forgiveness could be a factor of psychological well-being among adolescents. Forgiveness is able to have some positive effect on happiness, spiritual well-being, and subjective well-being among adolescents, including youth of bullying victims. Lastly, it can be concluded that adolescents with a high degree of forgiveness will be psychologically prosperous.