The current study examined the effectiveness of a life skills training intervention on the psychological health of adolescents and young adults with type 1 diabetes. This quasi-randomized controlled trial recruited 80 individuals from the West Azerbaijan Diabetes Community in Urmia, Iran. Participants were randomly allocated to intervention (n = 40) or control (n = 40) groups. The intervention group received nine sessions of life skills training, and the control group received routine care only. Data collection tools included a demographics questionnaire and the Depression, Anxiety, and Stress Scale. Compared to the control group, intervention group participants achieved statistically significant improvements in their physiological health, including stress (p < 0.04), anxiety (p < 0.04), and depression (p < 0.03). Nurses, including diabetes educators, should assess patients with diabetes for psychological complications and consider empowering adolescents and young adults with diabetes through life skills training, which can be incorporated into diabetes management plans to promote health and well-being. [Journal of Psychosocial Nursing and Mental Health Services, 59(10), 41-47.].