Background. Because nightmares seem to be associated with depression in schizophrenia, detecting them early in therapeutic practice might be critical to ensuring effective avoidance of the development of depressive symptomatology. This helps promote well-being and improve the patient’s quality of life and illness prognosis. Therefore, the aim of this study was to examine the indirect effect of depression between nightmares and well-being in a Lebanese sample of patients with schizophrenia. Method. This monocentric cross-sectional study, conducted in July 2022, enrolled patients with chronic schizophrenia admitted to the Psychiatric Hospital of the Cross. Data were collected from a total of 148 participants through face-to-face interviews. The questionnaire included a nightmares measure, PSYRATS, Calgary depression scale for schizophrenia, PTSD checklist for DSM-5, the digit span subset, and WHO-5Well-Being Index. Results. The presence of nightmares was significantly associated with more depression, whereas higher depression was significantly associated with lower well-being. It is noteworthy that the presence of nightmares was not directly associated with well-being. Conclusion. Nightmares lead indirectly to lower well-being in schizophrenia patients, with depression serving as a mediating factor in this association. This suggests that interventions aiming at improving dream content may also have a beneficial effect in reducing depression in schizophrenia leading therefore to better well-being of the patients.