Positive accounting research emerged during the 1960s and introduced a new perspective to accounting scholarship. Positive Accounting Theory (PAT), developed by Watts and Zimmerman, has become one of the most influential theoretical frameworks in accounting research. The Efficient Market Hypothesis, the Capital Asset Pricing Model (CAPM), and Agency Theory played significant roles in the development of Positive Accounting Theory. Unlike normative accounting, which is based on prescriptive rules and standards, positive accounting enabled the application of empirical research methods by incorporating concepts and analytical approaches from disciplines such as finance and economics. Despite its widespread influence, Positive Accounting Theory has been subject to considerable criticism regarding its research methodologies, theoretical foundations, and economics-based assumptions. Nevertheless, the theory provides a broad framework for conducting research based on observation and empirical evidence. Accordingly, Positive Accounting Theory constitutes the primary theoretical foundation of the present study. This study aims to evaluate Positive Accounting Theory, one of the most significant approaches in accounting literature, by examining its evolution from its emergence to the present day. The study discusses the origins of the theory, its fundamental assumptions, and its contributions to accounting research. Furthermore, it explores the major criticisms directed at the theory and examines its relevance in the context of contemporary developments, including sustainability reporting, Environmental, Social, and Governance (ESG) practices, and artificial intelligence. The findings suggest that Positive Accounting Theory continues to provide an important theoretical framework for explaining accounting practices; however, it also requires reinterpretation and adaptation in response to evolving economic and technological conditions.