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As Australia's population ages, the development of data-based psychological therapies for older people becomes a major issue. However, although there have been many studies on the effects of ageing per se, and some data regarding the correlates of ability to withstand adversity in younger samples, little has been published on the particular relationship between those correlates and the psychological wellbeing of older persons. The present study investigated the relationship between cognitive hardiness, explanatory style, and depression-happiness via individual questionnaires with 129 men and women between the ages of 65 and 80 years. Results indicated that, while there was a significant relationship between depression-happiness and pessimistic explanatory style, the strongest predictor of depression-happiness was cognitive hardiness. Factor analysis of the questionnaire collected on cognitive hardiness indicated that confidence in one's ability to handle change and/or social interactions, belief in one's competence in general, and the receipt of personal meaning from one's social and political activities were the major underlying factors. Implications and suggestions for development of effective psychological interventions and preventative programs with older people are discussed.