Background:With the global population aging, understanding the factors that affect the psychosocial well-being of elderly individuals is increasingly important. Stress, which can be influenced by factors such as age, gender, education, and religion, has a significant impact on their mental health. Examining how these demographic variables relate to stress is vital for developing effective strategies to improve the quality of life for older adults.Aims and Objectives:The aim of this study is to investigate how demographic characteristics influence stress levels among elderly individuals living in old age homes and assess their impact on psychosocial well-being. The specific objectives include: (1) identifying the relationship between demographic factors and stress levels, (2) analyzing the effect of stress on psychosocial well-being, and (3) determining which demographic factors significantly influence stress and well-being.Methodology:A cross-sectional survey was carried out among 360 elderly residents of old age homes in Salem, Tamil Nadu, using multistage and stratified random sampling. Data collection focused on demographics, stress levels (measured through the Perceived Stress Scale), and psychosocial well-being (assessed using the WHO-5 Well-Being Index). Structural Equation Modeling (SEM) was employed to analyze the relationships between demographic factors, stress, and well-being, with thorough model validation.Results:The study found that the majority of participants were younger elderly individuals (60-65 years) and most were male. Half of the participants reported moderate levels of stress, with psychological factors being the most prominent contributors. Psychosocial well-being was categorized into low, moderate, and high levels, and a clear negative correlation between stress and well-being was identified. Multiple regression analysis showed that factors such as age, education, and financial status significantly influenced stress levels. Structural Equation Modeling (SEM) supported these findings, revealing that stress negatively affected psychosocial well-being, while education and financial stability had a positive impact.Discussion:The results highlight the complex relationship between stress, demographic factors, and psychosocial well-being in the elderly. Age, education, and financial stability emerged as key predictors of stress, which in turn affected overall well-being. These findings point to the need for focused interventions to help manage stress and enhance mental health among older adults. Future research can build on these insights to design effective programs that improve the quality of life for elderly individuals living in institutional settings.Conclusion:This study highlights the relationship between demographic factors, stress, and psychosocial well-being among elderly residents of old age homes. Key factors such as age, education, and financial stability significantly influenced stress levels, which in turn affected their overall well-being. The findings emphasize the importance of tailored interventions to manage stress and enhance the mental health of older adults, ultimately improving their quality of life in institutional settings.