Abstract Despite the rapid increase in the number of elderly people in Ethiopia and their growing multidimensional problems, there has been relatively little research on the issue.The aim of this study was to investigate conceptions, psychosocial challenges and coping mechanisms of elderly people in Durbete Town. The study was carried out on the lived experiences of 9 elders (4 males and 5 females)in the town.The participants were selected purposively. Data were collected by using in-depth interview.The finding of the study indicated thatelders’ conceptions about their oldness are either positive or negative. The positive conceptions include feelings of joy and satisfaction, contribution and feeling of wisdom.On the negative side: they have feelings of loneliness, sadness,being tiredand discouraged. As to challenges, psychological problems experienced by elders include fear, stress, depressionand mental disability. Social challenges of elders are isolation, being disrespected and stereotype. Elders have used different mechanisms of coping to withstand their challenges. Such mechanisms include engagement in religious practice (praying), involvement in different social and income earning activity;participating in older people association (OPAs), redefinition of self, acceptance and forgiveness. The findings suggest that appropriate social and psychological support need to be in place to enhance elders’ life satisfaction.