Psychological well-being is about lives going well. It is the combination of feeling good and functioning effectively. Sustainable well-being does not require individuals to feel good all the time; the experience of painful emotions is a normal part of life, and being able to manage these negative or painful emotions is essential for long term well-being. Happiness in a broad sense is a label for a family of pleasant emotional states, such as, joy amusement, satisfaction, gratification, euphoria and triumph. Lockdown during pandemic has disturbed the psychological functioning of human beings. Psychological well-being and happiness would be disturbed due to condition of lockdown. Hence, the present study focuses to understand the psychological well-being and happiness among young adults under the condition of lockdown. The study was executed in two phases. Results show that there is significant relationship between psychological well-being and happiness among young adults. Thematic analysis shows that lockdown has an effect on young adults. Building strengths to handle tough situations is very important. Thoughtful, careful, adaptable and effective practices can help deal with lockdown during pandemic.