Objective - The objective of the study is to investigate the mediating role of emotional regulation in the relationship of moral disengagement and psychological well-being among the adults. Material and Methods-The sample of study was (n=550) university students and they were selected through purposive sampling technique. The age range of participants was from 18 to 25 years. Urdu version of Moral disengagement scale for adults, Emotional regulation scale and Psychological wellbeing scale were administered for the data collection. Results-Hayes Process version 4 mediation analysis revealed the significant negative direct effect of moral disengagement on psychological wellbeing and emotional regulation. Further, a significant indirect effect of moral disengagement B (-0.312, p<.001) on psychological wellbeing through emotional regulation was appeared which confirmed the partial mediation of emotional regulation. Conclusion- It is concluded that moral disengagement has a decreased negative impact on psychological wellbeing through emotional regulation. Emotional regulation has a positive impact on psychological wellbeing as a mediator even in the presence of moral disengagement.