This study explored the role of stress and coping on the psychological well-being of 316 older adults in assisted living. Hierarchical regression revealed that high stress was significantly associated with high depression and low life satisfaction, while high levels of social support and spiritual coping mechanisms were significantly related to low depression and high life satisfaction. The findings indicated the necessity of appropriate assessment and intervention for older adults with stressful events and psychological distress. However, there is a lack of trained professionals to improve older adults' ability to cope with their problems. Practice and policy implications are discussed.