Amid a widely acknowledged global mental health crisis, the potential therapeutic benefits of psychedelics continue to garner public interest. Current research suggests that psychedelics, substances known to alter perception and cognition, can induce self-transcendent experiences (STEs). STEs can provide individuals with feelings of unity and interconnectedness with themselves, others, and their environment; are often accompanied by a sense of ego dissolution; and have been shown to lessen certain psychopathologies and increase well-being. However, there is limited knowledge and understanding of the psychological mechanisms that mediate psychedelic-induced STEs (PI-STEs) into positive outcomes. Among several candidate mechanisms, PI-STEs may result in self-distancing, a subjective feeling of detachment or separation from the ordinary sense of self. Self-distancing could lead to changes in beliefs or mental representations of a topic that are trait-like, goal-relevant, and readily understandable by most people. A deeper understanding of self-distancing and the potential belief shifts resulting from PI-STEs could help design, test, and advance accessible and scalable psychedelic-assisted therapy (PAT) approaches that lead to human flourishing.