This chapter discusses the mental health challenges among the elderly population with particular reference to ageism. Selective attention and cognitive simplification characterizing the constructed meanings of ageing result in ageism. This, in turn, renders a significant segment of elderly population at a disadvantage. Pervasiveness of the structural and cultural factors, as reflected in ageism, makes it undeviating particularly in developing societies. The internalization hypothesis indicates that self-concept deteriorates with ageing when socialization process in certain cultures recursively reinforces negative attitudes about old age in the self. Misconceptions about sexuality in older adults and the lack of a non-judgmental interpersonal space add to their existing adjustment problems. Overgeneralization of “Empty nest syndrome,” as well as hypothesis of physical and cognitive decline with age, reinforces disengagement rather than ensuring continued productivity in late adulthood. This may prove stressful to a section of the elderly who possess a high degree of self-efficacy. Hence, there is a need to focus on inherent strengths and enduring psychological youthfulness of the aged population for securing their right to life with dignity.