Spirituality and happiness are two very important aspects of human life. After defining happiness, an attempt has been made in this paper to review research on the relationship between happiness and spirituality, and then to experimentally study their correlation among students aged between 18-24 years. The relation was assessed in 200 students from IIT Kharagpur, who rated their own spirituality, and happiness using the Daily Spiritual Experience Scale (DSES) developed by Underwood, and the Subjective Happiness Scale (SHS) developed by Lyubomirsky and Lepper, respectively. Students who were more spiritual in general, were happier as well, and the Pearson Correlation Coefficient method gave a high positive correlation between happiness and spirituality.