["European Journal of Education, Volume 61, Issue 2, June 2026. ", "\nABSTRACT\nDespite growing interest in positive psychology and AI‐enhanced language education, limited research has examined how teachers' character strengths shape student outcomes in AI‐assisted EFL classrooms. To address this gap, this study examined the relationship between English as a Foreign Language (EFL) teachers' character strengths and students' motivation and well‐being in classrooms integrating Artificial Intelligence (AI) tools. A total of 572 EFL learners participated in the study and completed three validated instruments: the Teachers' Character Strengths Questionnaire (TCSQ), the Students' Motivation Questionnaire (SMQ), and the Students' Well‐Being Questionnaire (SWQ). Data were analysed using SPSS version 27 and AMOS version 24 through correlational and structural equation modelling (SEM) analyses. The results revealed significant positive correlations between teachers' character strengths and both students' motivation and well‐being. Specifically, the character strengths of humanity, transcendence, and wisdom emerged as the strongest predictors of students' intrinsic motivation and emotional well‐being in AI‐assisted learning environments. These findings highlight the central role of teachers' positive psychological attributes in fostering learner motivation and emotional balance when technology is incorporated into classroom instruction. Theoretically, the study supports the integration of positive psychology and self‐determination theory within AI‐mediated educational settings. Practically, it underscores the importance of teacher training programmes that promote character development alongside technological competence. Implications for policy, pedagogy, and future research are discussed in light of these findings.\n"]