This study examined the life events and difficulties inherent to the immigration process and the sources of social support that influenced mental health. A six-month longitudinal study, utilizing a detailed semi-structured interview protocol and standardized questionnaires, was conducted with a group of Chinese women who had migrated to Canada with their spouses in the last decade. All of the women and all of their spouses experienced major downward mobility. Correspondingly, the most frequent negative life event was employment-related and the most frequent difficulty was the financial strain of living below the poverty line, factors which significantly predicted the women's mental health. Social support had neither a main effect on mental health nor a buffer effect on the relationship between life events and difficulties and mental health. Implications for immigration and settlement policy are discussed.