Behind the image of resilience often associated with psychology students lies a paradox: those trained to understand mental health are, in fact, particularly vulnerable to mental health concerns. This contradiction, known as the mental health paradox, prompted the study. Grounded in the observation of increasing counseling consultations among psychology students at the City College of Calamba, the research examined the relationship between mental health literacy, psychological vulnerabilities, and coping mechanisms. The researchers employed a quantitative descriptive-correlational design using stratified random sampling across year levels, administering three standardized tests to gather data. Findings showed that 253 out of 278 students (92.34%) demonstrated high mental health literacy, indicating strong awareness and low stigma toward mental health disorders. Despite this, psychological vulnerabilities were at a moderate level. Students exhibited strengths in personal growth, environmental mastery, and self-acceptance, but showed difficulties in maintaining positive relationships and a clear sense of life purpose. Coping mechanisms were generally high, with students frequently using adaptive strategies such as religiosity, problem-solving, and recreational activities, while maladaptive tendencies like substance use remain least. Generally, statistical analysis revealed a low positive correlation between mental health literacy and both psychological vulnerabilities (r = .248, p < .05) and coping mechanisms (r = .273, p < .05). While mental health literacy serves as a protective factor, it does not eliminate vulnerability. In response, the CALM (Cultivating Awareness for Lifelong Mental Health) program is proposed establishing the CALM Room which served as a psychological wellness center offering mental health literacy resources, coping practices, professional guidance, rest spaces, and infographic or student-led projects for peer education.