The Happy Valley is a central symbol representing illusory contentment and the deceptive nature of utopian existence; it is therefore key to both The Philosophical Exploration of Happiness and Its Attainability as well as The Critique of Utopian Thinking. The novel describes this secluded valley with lush and idyllic imagery, portraying a paradise where every physical need and sensory desire is satisfied. The natural beauty and the constructed pleasures of the valley are intended to prevent its inhabitants from desiring anything beyond its boundaries. However, this setting is juxtaposed against the psychological and existential discontent experienced by Rasselas and others, who eventually find the valley suffocating. The valley therefore symbolizes the human condition of dissatisfaction and the inherent quest for meaning beyond material comfort. This symbol reflects on the nature of happiness and the human tendency to feel confined even in conditions of apparent abundance.

More specifically, the depiction of the Happy Valley is a kind of thought experiment. It takes as a given the common Enlightenment goal of applying reason and knowledge to create an optimal living environment free from the pains and dangers of the outside world.