Humanistic-existential therapy encourages the client to seek personal growth and actualise their potential. This therapy postulates that psychological distress arises from feelings of loneliness, alienation, and an inability to find meaning and genuine fulfilment in life. It believes human beings are motivated by the desire for personal growth and self-actualisation.

Self-actualisation is an innate force that moves a person to become more complex, balanced, and integrated. When the needs for emotional growth are curbed by society and family, it causes psychological distress. The chief benefit of humanistic therapy is personal growth, which involves gaining increasing understanding of oneself, and one's aspirations, emotions, and motives.

Therapies based on this principle include Logotherapy and Client-centred Therapy. In Logotherapy, the therapist is open and shares their feelings and existence with the client. The emphasis is on the here and now, and transference is actively discouraged. The goal is to facilitate the client to find the meaning of their being.

Client-centred Therapy assumes that the client has the freedom and responsibility to control their own behaviour. Healing occurs when the client perceives obstacles to self-actualisation and removes them. The therapy creates a permissive, non-judgmental, and accepting atmosphere for free emotional expression. The therapist acts merely as a facilitator and guide, with the chief aim being to expand the client's awareness.