Critical thinking is important to students in providing them to become an excellent employee or entrepreneur because with the skills they are able to identify issues/ problems in a complex situation ,assess and justify complex situation, think beyond boundaries at most times and to provide challenging views. Positive psychological well-being of students develops students’ constructive attitude toward challenges faced. Realizing the importance of critical thinking skills and positive psychological wellbeing to accounting student, this study was conducted to examine the effectiveness of coaching approach as a teaching strategy to improve the above factors. Coaching approach is a method that directly involves the learners, by actively encouraging them to do something in order to achieve their goals. A culture of mentoring and coaching will, over time, have an impact on young people and their learning. The approach can increase reflectivity and clarity of thinking, improved psychological wellbeing and confidence and better problem-solving or decision making skill. This study employed action research with the use of ‘Grow Coaching Model’. A management accounting students comprised of 29 participants were under studied. The instrument used to measure the attitude of critical thinking skills is Universiti Utara Critical Thinking Skills Rubric and Ryff Scales for psychological well-being. In this study, the researcher’s reflection and observation checklist were used to gather data throughout the interventions. This provides information of changes /improvement on how well the students develop critical thinking skills ability and positive psychological well-being. Results showed that students’ critical thinking skill as well as positive psychological well-being are enhanced through coaching approach. However, effective bonding/closeness between student and lecturer as well as longer time per student are needed to make this approach successful.