Aims. The present study was conducted to investigate the relationship between psychological distress, coping mechanism and quality of life of children living in orphanage. Methods. The current study used correlational research design. One-hundred participants were recruited through non-probability purposive sampling technique. Kessler Psychological Distress Scale (Ronald, 2002), The Coping Scale (Hamby et al, 2003) and Quality of Life Scale (Flanagan, 1970) were used as an assessment measures. Results. Correlational analysis showed highly significant negative association between psychological distress and quality of life, however, coping mechanism has significant positive relationship with quality of life. Findings also showed significant predicting role of psychological distress and coping mechanism with quality of life. Conclusions. Results concluded that higher coping mechanism would direct to healthy quality of life and decrease psychological distress. [ABSTRACT FROM AUTHOR]