We examined whether perceived discrimination can, in certain minority populations, promote subjective well-being, and whether this connection is mediated by minority group identity. Three hundred thirty-two members of the Ultra-Orthodox Jewish community in Israel, a distinctive religious culture within the Israeli majority culture, participated in the study. Results showed that perceived group discrimination was positively correlated with subjective well-being. Moreover, this connection was mediated by the individual’s identity as Ultra-Orthodox. We address these findings in light of the unique characteristics of the Ultra-Orthodox community, and consider the role of in-group values among certain minority groups as a possible source for the positive connection between discrimination and well-being.