Biomedical advancement has significantly contributed towards depression recovery but there are still populations who are affected, with limited access to health services. There is lack of attention paid to psychosocial factors that are helpful in depression recovery. This narrative review aims to examine the psychosocial factors in depression recovery through qualitative studies. Keyword searches were conducted using EBSCOHost, JSTOR, PsycARTICLES, PubMed, SAGE Journals and Scopus databases. Qualitative studies (n = 15) on psychosocial factors in depression recovery were identified. Review of the studies revealed the impact of psychological and social factors in the view of oneself and identity transformation throughout depression recovery and acceptance of self-initiated help-seeking behaviour that facilitated transformation of ill-self to better-self. The three main conclusions drawn from the review are (a) hope, optimism, resilience and self-efficacy; (b) working on oneself; and (c) social factors available for re-constructing of selves and functional lives. Enhancement and inclusion of psychosocial factors are needed in mental health policy. Future studies are suggested to focus on the ways of strengthening psychosocial factors at individual and community levels.