This paper recommends the integration of character strengths into talent identification and athlete development processes. A pivotal element of positive psychology, character strengths offer a valuable lens to view talent identification and athlete development at all ages and stages of an athlete’s career. Incorporating character strengths into talent identification processes can provide a more comprehensive understanding of an athlete’s potential beyond physical abilities. Similarly, by integrating character strengths into athlete development programs, sports organizations can foster a more holistic growth of key psychological skills in athletes. This paper explores the relationship between character strengths, related psychological frameworks, and sports performance and offers suggestions for assessing and developing character strengths in athletes. Overall, effectively leveraging character strengths in talent identification and athlete development programs may help sports organizations improve athletic outcomes.