Objective: This review article explored the current issues and future research directions of chronic illness from psychosocial perspectives using cancer research as an example. Method: Literature review and model comparisons are conducted. Four psychosocial models of chronic illness which are named collectively as U-shape psychosocial module are discussed, namely, psychopathology model, psychological growth model, the sense of we-ness of social support and unidirectional action type coping. Conclusion: Recent papers examining psychosocial perspectives of chronic illness have come to a consensus that "Chronic illness is an experience of ambiguous loss", and "the sufferers "experience complex feelings of ambiguous loss," and that "Chronic illness is the interaction between the individual and the environment." Three perspectives are derived from these findings: a. Chronic illness is not only a personal encounter, but also a social event. This implies that the perspective is changed from disease management to illness experience, and therefore from cure and compliance to care and empowerment; b. From hedonic paradigms related to the sense of subjective and psychological well-being, the meta-concept of the U-shaped psychosocial module is proposed to provide a basis for comparison between the four models discussed in the paper; c. Application of the U-shaped psychosocial module in clinical interventions could help us further understand the active ingredients and the role of self-actualization in the field of health psychology.