Flourishing is an eudaimonic dimension of psychological well-being associated with positive social and health outcomes. Determining correlates of health and well-being is critical for the development of evidence-based best practices, policies, and action plans that target older adults, especially in low- and middle-income countries where research on ageing, health and well-being is still scarce. The study aimed to determine the level of flourishing among older adults in Mongolia and to explore demographic and social factors that contribute to their flourishing in urban and rural areas of Mongolia. We used proportional quota sampling to select a non-probability sample of 304 community-dwelling older adults that reflected the national distribution of older age groups and rural/urban residency. We adapted and administered a widely used standardized questionnaire on flourishing and used multiple regression to establish correlates of flourishing. Study participants reported “very high” levels of flourishing; differences in median scores 53 for urban and 50 for rural older adults were significant. Sex ($$\beta =-\,2.09$$
β
=
-
2.09
, $$p=0.080$$
p
=
0.080
), level of education($$\beta =0.98$$
β
=
0.98
, $$p=0.009$$
p
=
0.009
) and receive help with ADLs ($$\beta =-\,2.29$$
β
=
-
2.29
, $$p=0.013$$
p
=
0.013
) were associated with flourishing in rural areas, as were self-rated health ($$\beta =1.14$$
β
=
1.14
, $$p=0.028$$
p
=
0.028
), number of social activities ($$\beta =0.050$$
β
=
0.050
, $$p=0.019$$
p
=
0.019
),and friends network ($$\beta =0.22$$
β
=
0.22
, $$p=0.035$$
p
=
0.035
) in urban areas. Despite facing many challenges to well-being, older adults in Mongolia reported high levels of flourishing. Those in urban areas had higher scores than those in rural areas and predictors of flourishing differed for these groups.