International students continue to experience myriad of challenges, some of which further transpired disproportionately during the COVID-19 pandemic era. To this effect, this study investigated psychological capital (PsyCap), psychological distress, and well-being among 188 international students attending U.S universities. Results using Hayes PROCESS indicated that well-being mediated the relationship between PsyCap and psychological distress and in particular moderated the relationship between PsyCap and depression. When higher education institutions are considering steps to mitigate psychological distress experienced by international students during the COVID-19 pandemic and beyond, based on the findings of our study, we suggest investing efforts and resources into two aspects: (a) promotion of positive mental health and well-being and (b) identification and development of positive psychological capital. We further discuss these results and implications for mental health promotion of international students in light of its limitations and recommendations for future research.