Addiction is a profoundly complex and multidimensional disorder that continues to affect millions across the globe, with youth increasingly exhibiting both behavioral and substance-related addictions at alarmingly high rates. These trends present not only urgent public health challenges but also deeply rooted social and moral concerns. This research examined a critical yet frequently overlooked dimension: the moral foundations embedded within environmental regulations, and how these moral underpinnings shape young people’s susceptibility to addictive behaviors. It specifically interrogated the ways ethically grounded policies—such as commitments to ecological justice, equitable access to safe recreational spaces, and the reduction of socio-environmental disparities—may function either as protective buffers against addiction or, when neglected, as catalysts exacerbating risk. Anchored in utilitarian, virtue, deontological, and care ethics, the research adopted a rigorous mixed methods design to systematically identify gaps where ethical reasoning is absent within policy frameworks. These gaps, the findings suggest, generate fertile ground for addiction by eroding resilience, diminishing communal solidarity, and weakening moral accountability. Crucially, the research revealed that sustainable addiction recovery requires more than punitive restrictions or biomedical interventions; they necessitate an inside-out transformation that integrates social, psychological, spiritual, and ethical renewal with structural reforms to the environment. Building upon these insights, the research advances Holistic Addiction Therapy Paradigm (HATM), which underscores moral values, resilience, self-awareness, and biblical principles as indispensable pillars for sustainable recovery. By weaving together moral philosophy, environmental ethics, and therapeutic practice, HATM provides a comprehensive framework for addressing addiction as both a moral and socio-environmental crisis.