This study examines the effects of resilience, optimism, and loss of resources on the psychological well being of the survivors of Pakistani earthquake of 2005 that occurred in the northern regions of Pakistan. The study was carried out in three phases, in the first phase the measures for the study Psychological well being scale, life orientation test (revised),Resilience scale, and Impact of event scale were adapted and translated in to Urdu by the researcher. A sample of 221 survivors was utilized and the construct validity of the measures was determined through factor analysis. In the second phase the hypothesis that there is a positive relationship between resilience, optimism, loss of resources and Psychological well being was tested, using a 100 able bodied survivors who were living in the shelters of Muzafarabad (50 males & 50 females) was taken. Interviews were held individually with each survivor and their responses on the measures were recorded as majority of the sample was illiterate. Hierarchical regression and path analysis was carried out to determine the relationship between the variables and the well-being of the survivors. In the third phase, interviews of 100 survivors were qualitatively analyzed to identify themes and highlight the factors that have contributed directly and indirectly to their well being. The discussion highlights the role of cultural background and the local perspective of the well being of the survivors in this region. The implications of the study are discussed.