This study aims to investigate the impact of engaging in arts activities on the psychological well-being of Chinese university students, focusing on the mediating role of emotional intelligence, specifically perceived stress, as a moderator. Purposive and convenience sampling techniques were used to collect data from 723 public and private Chinese university students. The partial least squares-structural equation modelling (PLS-SEM) technique was used to analyze Smart PLS 4 software. The result revealed that participation in arts activities positively and significantly influences university students' psychological well-being and emotional intelligence. Additionally, emotional intelligence positively and significantly mediates the relationship between participation in arts activities and psychological well-being. Lastly, perceived stress significantly negatively moderates the association between engagement in arts activities and emotional intelligence but does not significantly affect the relationship between participation in arts activities and psychological well-being. Empirical evidence indicates that participation in arts activities has a beneficial impact on students' stress levels, feelings of achievement, and general state of well-being. In addition, art activities are crucial for developing self-awareness, emotional intelligence, confidence, problem-solving abilities, creative thinking, and mindfulness practices. These findings have significant implications for educators and policymakers, underscoring the need to prioritize and advocate for integrating arts into the curriculum to enhance children's general well-being and cognitive growth. This study's limitations include its reliance on self-reported data, and lack of longitudinal design, which restricts the generalizability and depth of its findings.