An accumulating body of literature has shown the influence of neighborhood environment on wellbeing. This study investigated the relationship between perceived neighborhood environment and subjective well-being and the mediating effect of a sense of community among Chinese elderly. Subjective well-being included four indicators: life satisfaction, meaning in life, positive affect, and negative affect. The Perceived Residential Environment Scale assessed physical and functional aspects as material conditions of neighborhood. The Sense of Community scale was drawn from the Community Social Capital survey based on urban residents of China. Seven hundred and twenty community-dwelling older adults participated in this investigation. The results showed that the neighborhood environment related positively to life satisfaction, meaning in life, and positive affect but negatively to negative affect; sense of community partially mediated the relationship between the neighborhood environment and life satisfaction and fully mediated the relationship between neighborhood environment and meaning in life and positive affect. (C) 2017 Published by Elsevier Ltd.