The construction of hydropower projects is increasingly prevalent worldwide, particularly in the context of climate change mitigation. Community displacement resulting from the construction of these projects raises significant questions about the post-resettlement welfare and satisfaction of the individuals subjected to project-associated relocation and resettlement processes. Accordingly, the purpose of this research is to investigate the influence of physical resources, locational characteristics, the resettlement area, health facilities, housing facilities, communication, and the socio-cultural environment on the satisfaction of resettled people, along with two mediators: sustainable development and cultural resilience in the resettlement of the project-affected communities of the Barotha Hydropower Project (GBHP) in Pakistan. In this cross-sectional study, data are collected from 223 resettlers from three villages (Barotha, Eassa, and Feroze). The researchers examined sustainable development and cultural resilience as mediating factors that play a role in resettlers’ satisfaction. The physical resource results indicate that, in the GBHPP, resettled people are unsatisfied, while other variables such as locational characteristics, resettlement area, health facilities, housing facilities, communication, and socio-cultural environment play a significant role in resettlement satisfaction. The role of both mediators, sustainable development and cultural resilience, strengthen the relationship between the predictors and criteria in terms of their value and their contribution to the resettlers’ satisfaction. Through the analysis of these variables, this study offers a comprehensive understanding of these factors, which contribute to the satisfaction of resettlers. Additionally, the study seeks to provide insights that can inform the development of strategies that foster the creation of resilient and prosperous resettlement communities. The research conclusions will also aid in developing policies and community initiatives that support the happiness and wellbeing of resettled communities.