It is well known that neighborhood contexts form an integral part in shaping development across the lifespan. At the same time, it is recognized that there is variability in the manner with which the neighborhood context is associated with pertinent outcomes, such as mental health and psychological well-being. In this regard, empirical research has differentiated between subjective and objective neighborhood indicators. Midlife is a critical life stage due to middle-aged adults being “sandwiched” between generations and being firmly entrenched in the workforce; in this regard, the neighborhood context could play a role in shaping mental health and psychological well-being in midlife. Of importance is determining which factors account for development in midlife, and whether individuals can find protective factors in order to preserve their health and psychological wellbeing into older adulthood. The purpose of this dissertation was to examine whether and how neighborhood context is associated with mental health and psychological well-being in midlife. The first study examined whether the subjective and objective neighborhood context moderates the impact of monthly adversity on mental health and psychological well-being in midlife. The second study aimed to examine whether and which potentially relevant latent factors exist among subjective and objective neighborhood indicators in a sample of middle-aged adults from the Phoenix Metropolitan area. Taken together, the results of these studies provide evidence that neighborhood context is indeed relevant resource for middle-aged adults. Specifically, in Paper 1, found that individuals who live in neighborhoods with less disorder show fewer steep declines in mental health and well-being in months when an adversity was reported. Paper 2 found that that there are distinct latent constructs that were primarily comprised of factors related to resource and prosperity and financial strain for the objective indicators. For subjective perceptions factors comprised neighborhood insights. These findings contribute to the literature on potential ways in which neighborhood context may serve as a resource and serve as the groundwork for future studies that test mechanisms linking the neighborhood context to mental health and well-being in midlife and inform future intervention studies.