The present paper aimed at assessing the effects of young people’s indicators of life skills. The theoretical foundation of this research was obtained from Adler’s and the World Health Organization’s viewpoints on life skill and mental health. The method of this study was a survey (applied, descriptive and correlation), and the sample group consisted of young people aged 15-29 in Hajiabad town in South Khorasan province. The sample group of this study included 368 people the achieved from the Cochran’s formula. The study instrument was the standardized questionnaires of life skills and mental health. The evaluation of the questionnaires was 88% with respect to life skills and about 73% regarding mental health. Descriptive statistics indicated that the majority of the respondents were between the ages of 21 and 23. The majority of the participants held a high school diploma, and had an average income. Problem-solving and decision-making had the highest mean, and the critical thinking and creativity had the lowest mean among the life skills indicators. The young people’s mental indicators did not have significant differences. The findings of regression test showed that decision-making and self-awareness explained mental health very well. Self-assertion and creative thinking, respectively, had a marginal role in explaining mental health. With respect to correlation coefficient (R) between the variables, there was a strong relationship (about 95%), and the amount of the adjusted coefficient of determination was 93% which showed that 93% of the total changes affected the mental health.