The essence of Daoist philosophy is encapsulated in the concept of “Dao,” which is regarded as the primal source of the cosmos and the overarching principle that dictates the dynamics within it. The teachings of Laozi, particularly his notions of “effortless action” and “adhering to the natural order of the Dao,” offer profound and relevant guidance for the psychological health education of university students in the modern era. This paper delineates the distinctive attributes and psychological significance of Daoist educational thought and provides a detailed examination of how Daoist principles can enlighten and enrich current practices in the psychological health education of university students.