Background: The world and the health care system went through a challenging and life-changing situation. Psychological wellbeing and life satisfaction have an impact on the overall development of an individual. People with higher psychological wellbeing enjoy a better quality of life and a higher life satisfaction outcome. As a counsellor for the study population in this study, the investigator assesses the association between psychological wellbeing and life satisfaction during the lockdown and post-lockdown periods from August 2020 to January 2022 to provide appropriate service. Methodology: The researcher used a quantitative descriptive design. Six hundred seventy-two2 students participated by filling out an online demographic Performa, Ryff's and Keye's psychological wellbeing scale, and Diener's Satisfaction with Life scale. The psychological wellbeing and life satisfaction were assessed during lockdown, two weeks post-lockdown, and three months post-lockdown. Data Analysis: The psychological wellbeing and life satisfaction of undergraduate nursing students during and after the lockdown of the COVID-19 pandemic were analysed using descriptive and univariate regression analysis. Results: The study involved 672 nursing students, predominantly female Christians from Tamil Nadu, South India, with a mean age of 22.87 ± 1.94. Psychological wellbeing remained consistently high during the lockdown, two weeks post-lockdown, and 3 months post-lockdown, with scores of 91.42 ± 12.56, 91.75 ± 12.37, and 92.53 ± 14.31, respectively. Similarly, life satisfaction scores were 25.41 ± 5.39, 25.30 ± 5.61, and 25.54 ± 5.88 during these periods. Positive relationships with others significantly contributed to the student's psychological wellbeing (p < 0.001), with post-lockdown relationships showing continued significance. Additionally, personal growth exhibited a positive relationship (p = 0.030) between lockdown and three months post-lockdown. Life satisfaction significantly improved (p < 0.038) from lockdown to three months post-lockdown. Conclusion: Based on the findings, the counselor took appropriate interventions to improve the wellbeing and life satisfaction, such as tele-counseling based on the sub-scale and overall score, identifying appropriate support systems, enhancing positive coping strategies, and developing resilience.