Self-forgiveness (letting go of the feelings of victimization, resentment, and vengeance) is possibly shaped in its nature and extent by self-esteem and self-compassion, through various mechanisms. The latter two represent well-known affirmative self-resources with significant implications for life outcomes in individualistic and collectivistic cultures. However, the literature linking self-forgiveness and self-esteem is limited, and whether self-compassion mediates this relationship is not known. The present study addressed this gap by examining the mediating role of Positive and Negative Self-compassion (PSC NSC, respectively) in the relationship between Self-esteem and Self-forgiveness. Employing convenience sampling, 144 males (Mean age = 22.10 years, SD = 1.66 years) and 124 females (Mean age = 21.98 years, SD = 1.90 years) participants were chosen. Correlation and regression analyses along with the path analytic method were used to analyze the data. Findings revealed that both Self-esteem and PSC significantly and positively correlated with the dimensions of self-forgiveness (except Guilt). NSC correlated positively with self-esteem but negatively with PSC. NSC significantly and negatively correlated with some self-forgiveness dimensions like Realization and Reparation, and Attribution but positively with the Guilt dimension. Both PSC and NSC significantly mediated the relationships among Self-esteem, Realization and Reparation, Guilt, and Attribution. Findings suggest the association between self-esteem and self-forgiveness could be explained by elevated PSC and reduced NSC, highlighting the coexistence and simultaneous functioning of both self-esteem and self-compassion in a collectivist culture like India, with more pronounced effects of the latter. Future studies should verify these preliminary correlational findings using diverse cross-cultural samples and methodology.