The literature on psychological well-being reveals a number of conceptual and methodological issues such as multiple definitions, non-theoretically based measures, and neglect to study this concept in Muslim Arab cultures. Therefore, this study aims to provide base-line data on psychological health and well-being in a community sample of Bahraini adults, and to examine moderating effects of positive psychological well-being, self-concept, and religious commitment on the relationship between negative life events and depression. A survey method, using self-administered questionnaires, was used in this descriptive-correlational study. The study instruments consisted of eight demographic questions, two open ended questions assessing conceptions about psychological well-being, the CES-D Scale (Radloff, 1977), the LES (Sarason et al., 1978), 18-item Psychological Well-being (PWB) Scale (Ryff, 1989), a modified version of the Self-Attribute Questionnaire (Pelham & Swann, 1989), and a 13-item Religious Commitment Scale developed by the author. Out of 210 distributed questionnaires, 142 completed questionnaires were returned, constituting 68% response rate. In this sample, 56% were females, 53% were married, 79% were younger than 40 years of age, 72% obtained education levels above high school, 48% were employed, and 38% were students. Qualitative data analysis indicated that 'autonomy' was not viewed as a component of positive psychological well-being. Categories such as 'acceptance of self', 'Moral integrity', 'maintaining a balance', 'acceptance of God's will and one's destiny' and 'peace of mind' were identified. On the PWB scale, scores of 'positive relations' and 'purpose in life' were highest, while scores on 'autonomy' were lowest. Regression analysis showed that negative life events, psychological well-being, self-concept and religious commitment explained 37% of the variance in depression, while demographic characteristics explained 22% of the variance. Depression was significantly higher among the young, females, students, homemakers, and non-married. Attendance to religious rituals was the only significant moderator of the relationship between negative life events and depression (beta =-.57, F(3, 138)= 4.97, p<.05). Use of a non-representative sample was one of the limitations discussed. Recommendations included development of health promotion programs for high risk groups; use of principles of Islamic religion in therapy; and use of longitudinal designs and representative samples.