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This research is entitled “Bullying Effect as Reflected in Palacio’s Wonder: A Psychological Approach.” The objectives of the research are: 1) to describe the plot of the novel, 2) to describe the bullying effect experienced by the main character, and 3) to describe the moral value of the novel. The subject of this research is the novel Wonder by Raquel Jaramillo Palacio and the object is bullying effect experienced by the main character. This research is categoried into library research and to analyse the data it applies descriptive qualitative method. The theories used in this research are namely (1) theory of bullying effect by Daniels et al (2009), Thijs & Verkuyten (2008), Domenech et al (2009), and Lee (2004:16); (2) psychological approach theory by Subhan (2017), Albertine (2010), Wellek and Werren (1956), James (1947) and Dennis (1986); (3)the theory of plot by Abram (2009) and Klarer (2004: 15); (4) the theory of moral value by Rosyadi (2013) and Bertens (2000). The findings of the research are: First, the plot of the novel is progressive that consist of exposition (when the characters involved in the novel are introduced), inciting incident (when Auggie was accepted at formal school), rising action (when Auggie gets bad words and acts from Julian and his friends almost everyday), climax (when the problem occurs between Auggie and his friends), falling action (when Julian forced Jack to stay away from Auggie), resolution (when all the problems between Jack and Julian have ended well) and denouement (when all people around Auggie relay thankful for what Auggie did) . Second, the bullying effect experienced by the main character are: (1) short-term effect: giving up of his condition and blaming himself because he must be born with a disability. (2) long-term effect: keeping struggles, showing that he can be accept in his environment, becoming a brave, kind, friendly person and spreading positive vibes to other people. Third, the moral values can be taken from the novel are: (1) family member should support each other 2) we should not judge someone from his/her physical (3) be brave to surrender bullying. Keywords—bullying, bullying effect, wonder, psychological approach