Despite a substantial history of research on the well-being of host communities at tourism destinations, the individual psychological well-being of local residents remains an underexplored topic. This study explores the psychological well-being of tourism host community members through a case study of Queenstown, New Zealand. By drawing on the self-determination theory, an innovative focus group analysis approach, microinterlocutor analysis, complemented by thematic analysis, was used to explain the psychological well-being of individual host community members in a nature-based tourism destination. Findings revealed a sense of autonomy, relatedness to people and the natural environment, feelings of competence or mastery, and beneficence-supported psychological well-being. This study extends prior research on the well-being of host communities by identifying key psychological well-being domains explicitly related to host community members. Practical implications of the findings are highlighted with reference to nature-based destinations.