Ethiopia, especially the Amhara Region and Bahir Dar City, contends with substantial socioeconomic challenges that disproportionately impact individuals with physical disabilities, increasing their vulnerability. This research aims to explore the psychosocial resilience of people with physical disabilities in Bahir Dar City. A mixed-methods design was employed, utilizing both quantitative and qualitative approaches. Quantitative data were collected through structured questionnaires, while qualitative data were obtained from participants through key informant interviews, focus group discussions, and observations using a checklist. A systematic sampling method was used to select 134 participants. Qualitative data were analyzed through thematic analysis, and quantitative data were analyzed using descriptive statistics. Sociodemographic variables were presented using frequencies and percentages, and the Brief Resilience Scale (BRS) was utilized to measure psychosocial resilience. The Coping Inventory for Stressful Situations (CISS) was employed to assess coping mechanisms, categorized into task-oriented, emotion-oriented, and avoidance-oriented strategies. A binary logit regression model was employed to identified determinant factors influencing resilience. The findings revealed that 64.18% of participants exhibited low resilience, while 35.82% showed normal resilience. Task-oriented coping mechanisms were moderately utilized (mean = 2.9), emotion-oriented strategies were more prevalent (mean = 3.9), and avoidance-oriented coping was the least common (mean = 2.4). Individuals with low resilience used a broader range of coping strategies (mean total score = 22.1) compared to those with normal resilience (mean = 21.5). Key determinants of psychosocial resilience included sex (-2.93, p < 0.001), type of physical impairment (2.40, p < 0.001), duration of impairment (0.19, p < 0.001), employment status (0.51, p = 0.052), annual income (0.0000593, p = 0.008), and marital status (-0.89, p < 0.001). The study concludes that psychosocial resilience is influenced by various demographic and socioeconomic factors, emphasizing the need for targeted interventions to improve resilience. Recommendations include enhancing infrastructure accessibility, providing socioeconomic support, strengthening community networks, and implementing gender-sensitive interventions. Finally, further research is encouraged to investigate the experiences of individuals with diverse disabilities in conflict-affected contexts.