The world is witnessing an increased interest in the pursuit of psychological well-being or happiness as opposed to economic well-being, as captured by a country's gross national product. Bhutan is at the center of this drive. Despite this ideological fervor in the pursuit of happiness, few studies have explored the role of the school and the curriculum in this process. This study compares values education in Bhutan and moral education in Japan and explores how happiness is being instilled through the school curriculum. Although the histories of values and moral education in the two countries are dissimilar, both have recently carried out important political and legislative reforms with implications for education of this type. This study finds that there are similar dynamics in fortifying national identity through values or moral education in both countries, but that core concepts such as “love for family," “love for hometown," and “love for country," or “patriotism" as well as “international understanding and amity" are taught differently in each context.