This study analyzed the mediating effect of well-being between generalized self-efficacy and vocational identity development in a sample of 724 final year bachelor's students studying in Rawalpindi and Islamabad. Results from a parallel mediation analysis indicated that generalized self-efficacy was indirectly related to vocational identity development through its relationship with four of the six components of psychological well-being (autonomy, positive relations with others, purpose in life and self-acceptance) as well as the cognitive (life satisfaction) and affective (positive affect and absence of negative affect) components of subjective well-being. The implications of these results for interventions and future research are discussed.