Kyrgios suffered a third round exit at the US Open this week, having now gone five years since reaching a Grand Slam quarterfinal, with the admission that he has "no idea" how to make good on his potential.
According to Laver, who is in New York to mark the 50th anniversary of his second calendar Grand Slam, Kyrgios' issue is "obvious" a lack of discipline, reports Xinhua news agency.
"I don't know if he's deliberately aiming for publicity or whether he's aiming at individual things that he wants to accomplish, but that's the one thing he lacks is discipline," Laver said. "And if he got some discipline, then most things come pretty simple."
He said that Kyrgios' on-court antics are affecting his focus and costing him when it comes to winning matches.
"You don't interfere with your talent and that's what he's doing, is interfering with his own ability," Laver said.
Regularly making headlines for infringements and blow-ups, often directed at match officials, Kyrigos is currently facing a 12-month ban for abusing and spitting at an umpire, and subsequently accusing the governing body of corruption when they issued him a $113,000 fine.
But Laver said that if Kyrgios can maintain his composure there is plenty of opportunity for the youngster to make his mark.
( With inputs from IANS )