The current study investigates how stress and self-esteem interact in a wide range of levels. Studying the recent literature of the last five years, we understood that the findings indicated that self-esteem affected stress and it was affected from stress. This interaction takes place in different levels, including personal, psychological and professional parameters. These findings point out the importance of this interaction and the necessity of use of some stress management techniques which can not only reduce stress, but also improve self-esteem. As a result, the purpose of this literature review is to examine the connection between stress and self-esteem and to use this knowledge in order to reduce stress, improve self-esteem and as a result eliminate psychological disorders and ameliorate the quality of people’s life.