Facebook, MySpace and Twitter are universal social networking sites through which teenagers’ engage with others spending a great deal of time. The general opinion about social networking sites is that it is believed to have a negative impact on adolescents which includes addiction to surfing networking sites, lack of sleep, and absence of communication with the family members and so on. But to what extent the negative influence can disturb teenagers’ subjective well-being is a question of research. In contrary there are also positive aspects such as increased level of self-esteem, social support and social identity which is enhanced through social networking sites and influences teenagers’ well-being which motivated me to investigate “To what extent do social networking sites have an impact on the subjective well-being of the teenagers’?” My investigation will throw light on whether social networking sites hold a positive or negative effect on a teenagers’ subjective well-being. This can help us to evaluate whether social networking sites are a boon or threat. The investigation was carried out through research on identifying appropriate research evidence from various Psychology text books, articles, academic journals and internet sources. The investigation revealed that social networking sites have a positive effect on teenagers’ subjective well-being and the negative effect can be addressed through appropriate measures. The increased self-esteem, self- disclosure, social support, sense of belonging and empathy are achieved through social networking sites which can positively affect teenagers’ subjective well-being. Social networking sites can also lead to developing narcissistic tendencies, cyber- bullying and low self-esteem but these negative outcomes can be avoided. In conclusion, social networking sites are a boon and not a threat to individual’s subjective well-being.