Inner alchemy, also known as qigong in Chinese popular culture, is a form of self-cultivation focused on mind-body practices and energy work. Rooted in Daoist spiritual tradition, it conveys a model of well-being centered on nurturing the vital force or qi, which ranges from longevity to the integration of mind-body-spirit. As such, it constitutes an important topic of study in both psychological and medical anthropology. By drawing from an in-depth ethnographic study of a lay-oriented group of inner alchemy practitioners in Taipei City, the aim of this dissertation is twofold: 1) to investigate what role Daoist self-cultivation plays in the individual learning and internalization of well-being in contemporary Taiwan; 2) to consider this ethnographic case study in relation to the etic discourse on well-being, especially with regard to the theory of flow. Qualitative data show that my informants learn a particular mode of attending to and with their bodies, which also becomes a new modality of knowledge. The benefits attributed to the embodied learning center to a greater or lesser extent on how cultivated mental and bodily attitudes help practitioners to achieve optimal emotional states and on how these states can be integrated in other areas of everyday life. In sum, three key-findings emerge from this ethnographically informed work. First, the concern for well-being in Daoist self-cultivation has a cultural means and goal, that is, to cultivate the self/body in order to achieve optimal mind-body states. Second, optimal states can be consciously learned and evaluated on the basis of both individual experience and the sociocultural context. Third, my ethnographic data partly converge with the theory of flow, but at the same time indicate how an anthropological approach can contribute to positive psychology.