This study is titled as “Relationship between humour, stress and psychological well-being in young adults.” The objective is to study the relationship between humour and stress, humour and psychological well-being and stress and psychological well-being among young adults in Pune city. The total sample of 139 consisted of college students who are currently enrolled in a professional or a traditional course. The methodology consisted of purposive sampling. Standardized tools of Multidimensional Sense of Humour Scale, Perceived Stress Scale and Scales of Psychological Well-being were used for data collection in order to assess humour, stress and psychological well-being respectively. The Parametric measure of Pearson product-moment correlation was used to analyse the data, followed by regression. The results revealed a significant positive correlation between Humour and Psychological Well-being (significant at 0.01 level), and a significant negative correlation between Stress and Psychological Well-being (significant at 0.01 level). The implications could be that adaptation of humour in teaching methods will create a relaxing environment. This can facilitate student participation, concentration, attention, as well as can strengthen and increase social interaction.