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Background: Relaxation achieved through meditation can play a major role in achieving psychological wellbeing for people. Psychiatrists and psychologists are incorporating training in meditation in their psychotherapy practice. Regular meditation can reduce the number of symptoms experienced by patients with a wide range of illnesses and disorders. Aim: This study analyses the effect of meditation on the psychological well-being of people. Research Design: Survey method was adopted among a sample of 50 students from Sri Sarada College of Education for Women, Tirunelveli, who attended a meditation class and continued meditation for three months. Tools used: Data was collected using a questionnaire on the psychological well-being before and after meditation, quantified as the sum of scores of well-being parameters (OECD, 2013). The data was analysed through t test and regression. Results: The results show that students experience better well-being through meditation. The mean well-being a score of the students before mediation was 65.4 % of the maximum attainable score, which increased to 81.7 % of the maximum score after meditation for three months, with a statistically significant difference between them. Regression analysis shows that the score of six well-being parameters contribute to 76.7 % of the variation in the psychological well-being a score of students after meditation, with the parameters, namely, calmness, relaxation, tension and worry having a statistically significant influence on well-being . Among them, relaxation and reduction in tension achieved by the students through meditation have comparatively more influence on their well-being. After three months of meditation, 96 % of students report either maximum or high level of relaxation, while 64 % experience either minimum or no tension. Conclusion: Students are able to achieve better psychological well-being through meditation for a period of three months when compared to before practicing meditation. Relaxation and reduction in tension achieved through meditation exert more influence on well-being. It will be worthwhile to conduct research by yoga and meditation centres and disseminate the results to the public for better acceptance of such relaxation techniques.