There is limited research on the inter-relationship of materialism, life values, and happiness. This study examined a US sample of undergraduate students (N = 200; 132 women, 68 men) and how their materialistic values related to important life values and overall happiness. We used standardized measures of materialism and happiness, as well as open-ended questions about what participants valued most in life and what really mattered in their current and future life situation. Results indicated deriving happiness from materialistic values was negatively associated with happiness. Participants who mentioned God/religion as a life value reported lower levels of materialistic happiness compared to those who did not mention this category. Finally, those who mentioned family as a life value reported higher levels of happiness than those who did not. We also found interesting gender and age differences. Implications for future research include a call for cross-cultural study of these questions.