Understanding the complex dynamics between school interaction and the school environment is critical to promoting children's academic achievement and overall development. This research explores how positive school interaction influences academic engagement, social development, and emotional resilience among students, while also examining the role of the school environment in facilitating learning and development. Using the literature review method, the study reveals a significant correlation between positive school interaction and various indicators of student success. Furthermore, it highlights the central role of the school environment, which includes factors such as classroom design, resources, curriculum structure, and administrative policies, in shaping the overall learning climate and educational outcomes. Positive school interaction, defined by active engagement, supportive relationships, and effective communication among students, teachers, and peers, is consistently associated with improved academic achievement and well-being among students. Research shows that when students feel valued, supported, and connected to their school community, they are more likely to demonstrate higher levels of motivation, persistence, and self-efficacy in their academic pursuits. In addition, positive school interaction fosters a sense of belonging and social connectedness, which are essential for promoting emotional resilience and psychological well-being among students. Complementarily, qualitative insights from classroom observations and interviews of the studies reviewed provided rich contextual information about the nature and quality of school interaction. Observations of classroom dynamics, teacher-student interactions, and peer relationships shed light on the factors that contribute to positive or negative interactions within the school environment. Interviews with teachers and students offer perspectives on the role of communication, trust and support in promoting positive interaction at school and creating a conducive learning environment. The study also explores the influence of the school environment on student outcomes, emphasizing the importance of physical, organizational and socio-cultural factors in shaping the overall learning climate. Classroom design, resources, curriculum structure, and administrative policies play a critical role in creating a supportive and inclusive learning environment that promotes student success. Schools with well-designed facilities, adequate resources, and supportive policies tend to create a more positive learning environment that enhances student engagement, motivation, and academic achievement. Based on the findings, the study draws several conclusions about the relationship between school interaction, the school environment, and student outcomes. First, positive school interaction is a key predictor of student success, influencing academic achievement, social development, and emotional well-being. Second, the school environment significantly influences the quality of school interaction and student outcomes, highlighting the importance of creating supportive and inclusive learning environments. In conclusion, this research highlights the critical importance of encouraging positive school interaction and optimizing the school environment to promote student well-being and academic success. Recommendations emerging from the study support evidence-based strategies to enhance school interaction, create inclusive and supportive learning environments, and implement leadership practices that enhance collaboration and communication among stakeholders. Additional data collected from followup surveys and focus groups further strengthen the study's conclusions, highlighting the need for continued efforts to cultivate schools that empower all students to thrive academically, socially, and emotionally. [ABSTRACT FROM AUTHOR]