Although scholars suggested that entrepreneurial passion may be related to entrepreneurs’ life satisfaction, the mechanism underlying this association remains unclear. Drawing upon the self-determination theory, this study aimed to explore the mediating roles of basic psychological needs satisfaction and work engagement in the relationship between entrepreneurial passion and entrepreneurs’ life satisfaction in an Iranian context. Data for this study were collected from a convenience sample of 102 rural entrepreneurs using a self-administered survey. The results of structural equation modelling indicated that basic psychological needs satisfaction and work engagement mediated the relationship between entrepreneurial passion to entrepreneurs’ life satisfaction, both in series and in parallel. Overall, these findings advance the understanding of how entrepreneurial passion leads to rural entrepreneurs’ life satisfaction. A discussion of the findings, contributions, limitations and future directions is provided.