The aim of present research was to study the relationship between stress, coping strategies and subjective well-being among boarders and day-scholars. It also aimed to investigate the predictive role of coping strategies in determining psychological well-being. A convenient sample of 223 under graduate and post graduates (126 boarders and 97 day-scholars) were selected for this research with age range from 19 to 28. Stress was assessed by Depression and Anxiety Scale, coping strategies was measured by COPE and psychological well-being was measured by subjective well-being scale. The results showed that positive reinterpretation and growth, use of instrumental social support, active coping and religious coping were positively correlated with the psychological well-being among students.Active well-being was the strongest predictor followed by positive reinterpretation and religious coping. The psychological well-being of boarders was higher as compared to day-scholars. The males were higher on humor and social support coping strategies while females made greater use of religious coping strategy. The study has important implications in student counselling. It implies how coping strategies can enhance psychological well-being among students.