When we experience "moments of grace", or "magical moments" in daily life, while walking in the snow under the stars or spending a beautiful moment with dear friends by the seaside, what is really happening? All of a sudden, we have left our burden of inner conflicts behind. We feel in harmony with others, with ourselves, with the world. It is wonderful to fully enjoy such magical moments, but it is also revealing to understand why they feel so good: pacification of inner conflicts; a better sense of interdependence with everything rather than fragmenting reality; and a respite from the mental toxins of aggression and obsession. All these qualities can be cultivated through developing wisdom and inner freedom. This will lead not just to a few moments of grace but to a lasting state of well-being that we may call genuine happiness.