Psychological wellbeing is a crucial concern of the elderly. The aim of this study was to examine whether Selection, Optimization, & Compensation strategy and social support is predicting elders psychological well-being or not. At the same time patterns of Psychological wellbeing across demographic variables was identified. In order to achieve the objective of the study, community based descriptive survey design were used. Data were collected from arbitrarily selected 393 elders (170 males, and 223 females) in Western Shewa Town through questionnaire. As the result of the study revealed, most elders have moderate and below moderate Psychological wellbeing (30.3% & 49.4%), Selection, Optimization, Compensation strategy (31.6%, &47.7%) and social support(41.5% &37.7%) respectively. Also the result of the study indicated that Psychological well-being was significantly and positively correlated with social support (r=.977, P