<p>India witnessed a significant legal transformation with the partial decriminalization of IPC section 377 in September 2018, yet this shift did not automatically lead to widespread societal acceptance of non-heteronormative identities. Within this complex sociocultural terrain, individuals with non-heteronormative gender identities and sexual orientations often face uncertainty and stigma, particularly in predominantly heteronormative environments. Against this backdrop, the act of “coming out” to parents and peers emerges as a critical psychological event, raising questions about its impact on happiness, subjective well-being, and perceived meaning in life. This study investigates these dynamics among 200 lesbian and gay individuals, stratified by socio-economic class: upper to upper-middle (out = 50, closeted = 50) and lower to lower-middle (out = 50, closeted = 50). Using pathway analysis, this research explores the direct and indirect effects of socio-economic class and coming out status on psychological well-being. Results indicate that coming out significantly predicts happiness, well-being, and life regard. While socio-economic status significantly affects subjective well-being and meaning in life, it does not directly influence coming out likelihood or happiness, though it does have an indirect effect on happiness. These findings suggest that structural positioning shapes emotional experiences through mediated pathways. The study extends ‘Minority Stress Theory’ (in Indian context) by illustrating the indirect role of socio-economic status in shaping psychological well-being via meaning in life, advocating for a more structurally-informed framework of identity-related stress. It also challenges Western-centric models of coming out by emphasizing the importance of culturally and contextually grounded theories that reflect the specific realities of non-heteronormative life in post-377 India.</p>