This study examined the relationship between disability acceptance and life satisfaction among 125 community-dwelling adults with mental illnesses, and investigated the moderating effect of interpersonal competence in this relationship. The purpose of the present study is to provide foundational data that could assist individuals with mental illnesses in achieving greater satisfaction in their daily lives. Data from the seventh dataset of the second wave of the Panel Survey of Employment of the Disabled(PSED, 2022) was analyzed using Hayes(2022) SPSS PROCESS Macro(model 1). The findings are as follows. First, disability acceptance had a significant effect on life satisfaction of individuals with mental illnesses. Second, interpersonal competence had a moderating effect on the relationship between disability acceptance and life satisfaction. In the group with high and average levels of interpersonal competence, the effect of disability acceptance on life satisfaction was significant, whereas this effect was not observed in the group with a low level of interpersonal competence. These results suggest the importance of enhancing not only disability acceptance but also interpersonal competence in psychotherapy and counseling. Lastly, the implications and limitations of the present study, and directions for future research were discussed.