It is often assumed that old age is a time of numerous losses, irritants, and stress. Although researchers have examined the interrelationship of stress, health, and happiness in old age, stress is usually operationalized as a response to major life events; however, stress can also be operationalized as a response to the everyday experiences of life. Older male veterans (N=24) with a mean age of 76 were interviewed about their background, ways of coping, hassles, anxiety, depression, somatization, locus of control, social supports, perceived health and functional states, affect balance, morale, and problem-solving ability. Data indicated that stress and coping were complexly related to health and happiness. Subjects were in fair to poor health, experienced fairly low stress and moderate morale. Stress was strongly correlated with low morale and a problem-focused style of coping. For men in good health, stress was unrelated to morale. The healthiest older men used acceptance as a way of coping with stress, a behavioral style that appeared to be acquired over the lifespan. The findings suggest that more competent and well individuals tend to be less affected by their environments. (Author/NRB)