Despite growing studies on Appreciative Inquiry (AI), rooted in positive psychology, its application in a research laboratory and its associated impact on students' mental health and well-being are underexplored. Thus, this study explores how a positive environment affects students' mental health and wellbeing. Interpretive descriptions guided the data collection and analysis process. We conducted focus groups and interviews with 23 students recruited through convenience sampling. Reflexive thematic analysis identified three themes: (1) feeling valued by others builds confidence, (2) strength-based guidance fosters growth, and (3) meaningful research work increases resilience. Our study suggests that a positive environment informed by Appreciative Inquiry has the potential to positively affect the mental health and well-being of international students.