Aims. The recent study aimed to investigate the relationship between negative life events, posttraumatic growth and psychological distress in adults with acquired physical disability. Method. Purposive sampling technique was used to collect sample of 112 participants form Rawalpindi Hospital. Traumatic Experience Checklist (Nijenhuis et al., 2002) was used to measure the potentially traumatizing events, Post Traumatic Growth Inventory (Tedeschi & Calhoun, 1996) was used to measure overall assessment of positive outcomes occurring after a traumatic event and Kessler’s Psychological Distress Scale (Kessler, 2002) to check one’s psychological condition and the level of Stress, Anxiety and depression were used in this study. Result. Findings of the study suggested that there was a significant positive relationship between negative life events and posttraumatic growth. Negative life event was positive predictor of psychological distress and posttraumatic growth. Moreover, Posttraumatic growth was not predictor of psychological distress. Conclusion. Findings of this study concluded that higher number of negative life events and posttraumatic growth leads to psychological distress.