The field of developmental psychopathology has made significant contributions to our understanding of both typical and atypical development. However, whilst there are established theories for developmental psychopathology with detailed criteria for pathological outcomes, there is less agreement regarding development under optimal conditions and the definition of positive outcomes. In this conceptual paper, I make the case that a better understanding of positive child development is crucial because it will not only advance our general knowledge on human development but also complement current work on developmental psychopathology. After defining positive development as the development of positive functioning in children, such as skills, strengths, competencies, and wellbeing, rather than the absence of problems, current concepts with relevance for positive development are reviewed, before highlighting gaps in our knowledge on positive development and suggestions for future research. Although several of the reviewed frameworks provide important contributions to the conceptualisation of positive development, most of them focus on positive functioning in adults with limited consideration of development in the early years. More research is needed that specifically targets the development of positive outcomes from early childhood onwards in order to develop a more comprehensive and holistic theory of positive child development.