This study aims to explore and understand the process of developing students' self esteem and self-direction in growth-oriented alternative schools. The Strauss and
 Corbin grounded theory method was applied in this study. Data were collected through in-depth interviews with 33 middle and high school students attending alternative growth schools. Categorization, processes, and situation analyses were performed. A total of 565 concepts, 62 subcategories, and 16 categories were derived through the categorization analysis. As a result of structural analysis, a paradigm model of “causal conditions”, “contextual conditions”, “central phenomenon”, “mediating conditions”, “strategy”, and “result” was derived. The central phenomenon was “'crisis of learning and life”. “Students going through this live in a growth community.” Through process analysis, “crisis and confusion phase”, “conflict and choice phase”, “exploration and understanding phase”, “reflection and practice phase”, and “change and growth phase” were derived. Through situational analysis, the “growth community system”, “growth type alternative curricula”, and “educational meetings at growth type alternative schools” were identified as factors influencing the growth of students' self-esteem and self-direction. This study has meaningful implications at the student, family, school, and policy levels for increasing self-esteem and self-direction in growth-oriented alternative schools for children experiencing learning and life crises.