The present longitudinal investigation explored the extent to which physical wellbeing predicts psychological wellbeing in a sample transitioning from school to postschool life. The study comprised 213 young people assessed in their final year of high school (T1) and then one year later (T2). Longitudinal structural equation modeling supported hypothesised paths at each time point, with physical health positively predicting psychological health and perceived life quality and satisfaction. At T2, physical health also positively predicted a sense of meaning and purpose in life. Supplementary analysis showed a significant cross-time effect from T1 psychological health to T2 physical health. Findings hold substantive and practical implications highlighting the importance of multidimensional and integrative approaches to understanding and enhancing the wellbeing of young people who are making the transition from late adolescence to early adulthood.