The recent study aimed to investigate the relationship between negative life events and psychological distress in adults with acquired physical disability. 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 negative life events and Kessler’s psychological distress scale (Kessler, 2002) was used to check the level of psychological distress were used in this study. Findings of the study suggested that there was a significant positive relationship between negative life events and psychological. Negative life event was significant predictor of psychological distress. The authors conclude that the evidence supports positive psychology interventions in hospital to combat the effects of negative life events through the positive psychological states of optimism, hope, and gratitude. The specific clinical implications for practicing counselors and educational settings are suggested.