This paper explores the Vedic psychological theory outlined in the Bhagavad-Gita. This theory is presented by the Bhagavad-Gita as a broad and practical psychology of life intended to foster higher levels ~f human development. This theory is outlined in terms of its characterization of suffering, transcendence, and enlightenment. Suffering is said to arise from the lack of a stable inner source of fulfillment; transcendence is described as an experience of inner fulfillment as the awareness effortlessly becomes silent in the experience of the "Self" beyond thought. Enlightenment is defined as a permanent state in which, through repeated experience of transcendence, the "Self" becomes a background for all other experiences; this is said to result in stable inner fulfillment and most effective behavior.