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The novel coronavirus disease (COVID-19) pandemic has created a crisis with a severe effect on the masses, particularly the young students across the world. Framed by the transactional theory of stress and coping, this study investigates the factors influencing psychological well-being (PWB) of the students in higher education during the peri-traumatic phase of COVID-19. A cross-sectional survey using a questionnaire was employed. The study aimed at prediction and theory building and was carried out in India. Data were collected online from 173 higher education students. Partial least squares structural equation modelling (PLS-SEM) was used to test the hypothesised relationships among the constructs. Results indicated resilience significantly predicts PWB both directly and indirectly. Further, the study revealed perceived distress and PWB are not on the same continuum. This study has a contribution to theory and health promotion. Furthermore, the findings have several practical implications for counselling psychologists, academicians, and mental health workers associated with the higher education sector. These findings will put them in a better position to design interventions to enhance resilience in students in the backdrop of the relevance of both positive and negative mental health during the outbreak of diseases. Based on the findings, future directions were discussed.
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