We analyze how institutions in the form of organizations, laws, and policies can help foster human flourishing, and provide examples of the role that institutions can play by changing individual preferences and values. First, we analyze how to apply positive psychology to redesign law firm cultures to enable attorneys, clients, and communities to thrive. Second, we investigate how to empower law students, law professors, and other law school constituencies. Third, we demonstrate how to apply positive psychology to foster innovation, creativity, and entrepreneurship. Fourth, we identify some complexities of utilizing subjective well-being measures to evaluate the impacts of laws and policies. Finally, we develop implications from positive psychology about what governments and others can do to support individuals, communities, and societies to thrive. Our goal is to provoke discussion about positive psychology’s role in developing institutions in the form of organizations, laws, and policies that help individuals, communities, and societies.