This study explores the identity of traditional values among Chinese adolescents and its correlation with their mental health. A questionnaire survey, utilizing the Confucian Traditional Values Scale and the Secondary School Students’ Mental Health Scale, was conducted with 500 students from Grade 7 through the final year of college. Our results showed the following: (1) adolescents generally agree with traditional values; (2) there were no significant differences in overall agreement with traditional values among adolescents based on their gender, place of birth, class cadre status, only-child status, or academic major, though differences were observed in specific dimensions based on these variables; (3) traditional values identity varied across grade levels, with senior high school students showing notably higher identification than junior high school and college students, peaking in the second year of senior high school; and (4) there is a significant negative correlation between adolescents’ traditional values identity scores and their mental health scores, indicating that higher traditional values identity scores are associated with better mental health levels. These findings highlight the positive influence of traditional values on the development and well-being of Chinese adolescents, underscoring the importance of integrating these values into educational and developmental frameworks in China and other East Asian regions with similar cultural backgrounds.