OBJECTIVE: This study aimed to measure associations between protective factors associated with positive psychological outcomes for Aboriginal and Torres Strait Islander youth living in an urban area. METHODS: Our primary outcome was the absence of psychological distress, reflecting a positive-outcome approach to analyse health assessment data, using modified Poisson regression, from a cohort of Aboriginal and Torres Strait Islander youth aged 15 to 24 years attending an urban Aboriginal and Torres Strait Islander health service (2016-2021). RESULTS: Health assessments from 710 participants were analysed, with 72.1% of young people found to not be experiencing depression. Exercise, sport, and absences of marijuana use, smoking cigarettes, difficulty getting a job, homelessness, trouble with the police and experience of violence were associated with an absence of depression. CONCLUSIONS: Most young people were not experiencing depression. A positive-outcome approach provided evidence to support avenues to success which need to be developed with Aboriginal and Torres Strait Islander communities. IMPLICATIONS FOR PUBLIC HEALTH: Policy makers, clinicians and health services need to resource and maximise opportunities to access safe accommodation, participate in employment, exercise and play sport and to avoid marijuana, cigarettes, violence and trouble with the police.