This study empirically validates the psychosocial model of social exclusion in 301 randomly selected Dalit women. The model postulates that stigmatized lower caste identity is non-dominant that induces and sustains discrimination, disposing individuals vulnerable to psychosocial disability, which substantially reduce quality of social life. The fit indices show good data model fit. The X 2 = (10, N = 301) = 16.228; p > 0.05). Adjusted goodness of fit index (AGFI) was 0.915, comparative fit index was 0.920, root mean square error of approximation was 0.050 and Root mean square residual (RMR) was 0.073. Enacted stigma (b = 0.211; p < 0.001), non-dominant identity (b = 0.113; p < 0.05) and perceived stigma (b = 0.419; p < 0.001) significantly increased discrimination in Dalit women. Discrimination significantly increases psychological disability (b = 0.169; p < 0.001) and social disability (b = 0.550; p < 0.001). Psychological disability (b =-0.111; p < 0.05), social disability (b =-0.272; p < 0.001) and discrimination (b =-0.340; p < 0.001) significantly reduced Dalit women's quality of social life. Hence, the study concludes that this model is potentially useful to explain the process of social exclusion in Dalit women.