While the positive effects of physical activity (PA) on mental health are well documented, limited research has explored its influence on the positive psychological well-being in elderly individuals. This study examined the effects of a multi-component PA intervention on various facets of psychological well-being among older adults residing in retirement homes. Fifty-eight elderly individuals (mean age = 83.8 years, 76.3% female) residing in retirement homes participated either in either a 12 week multi-component PA intervention program or in an attention control group. Those in the intervention group engaged in supervised group exercise lessons for 45 min, three times per week, and used wearable activity monitors during weekdays over 12 weeks. Assessments were conducted before and after the intervention to measure happiness, life satisfaction, eudaimonic well-being, and depressive symptoms, which are four components of psychological well-being. On average, those in the intervention group attended about 86.9% of group exercise sessions and used the activity trackers for 97.5% of the designated days. Results from linear mixed models indicated that the intervention had a positive effect on happiness in the intervention group, but not in the control group. Nonetheless, no significant differences were found in terms of changes in eudaimonic well-being, life satisfaction, and depressive symptoms between the two groups. This selective impact on different dimensions of psychological well-being implies that subsequent research could explore the integration of more comprehensive components in PA interventions targeting all dimensions of psychological well-being, as each of them is a key aspect of healthy aging and independently related to a range of health outcomes amongst older adults. This study aimed to examine the impact of a multi-component physical activity (PA) intervention on psychological well-being in older adults living in retirement communities. Fifty-eight participants (mean age = 83.8 years) were voluntarily assigned to a 12-week multi-component PA intervention program or an attention control group. Participants in the intervention group were asked to take three 45-min supervised group exercise lessons per week and wear wearable activity trackers during the weekdays for 12 weeks. Four components of psychological well-being were assessed at baseline and the end of the intervention including life satisfaction, happiness, eudaimonic well-being, and depressive symptoms. Linear mixed models revealed a significant positive intervention effect on happiness such that happiness improved in the intervention group but decreased in the comparison group. However, there was no significant difference between the two groups in terms of the changes in life satisfaction, eudaimonic well-being, and depressive symptoms.