The current study aimed to test the association between traumatic events and psycholgocial wellbeing among Palestinians, and to explore whether mattering, anti-ant-mattering, and posttraumatic growth (PTG) moderate the association between these two variables. A total of 610 Palestinian adults participated in the study, comprising 220 males and 390 females. Participants were recruited using online methods, including emails, social media, and advertisements. Results of correlational analysis revealed that traumatic events showed a negative correlation with PTG (r = −.19, p < .01), psychological well-being (r = −.22, p < .01), and mattering (r = −.17, p < .01). In contrast, traumatic events were positively associated with anti- mattering (r = .18, p < .01). Results of regression analysis showed that psychological well-being was negatively predicted by traumatic events and anti-mattering, while it was positively predicted by mattering and PTG. The current study emphasizes the importance of creating interventions that promote PTG, allowing Palestinians to transform their traumatic experiences into opportunities for personal and communal development. Additionally, enhancing self-mattering is strongly associated with psychological well-being and resilience. Encouraging Palestinians to feel valued and connected to their communities may help mitigate the negative effects of prolonged trauma, ultimately leading to better mental health outcomes.