In this paper we examine whether health status and functional capacity explain the fact that obese individuals report significantly lower levels of subjective well-being. We use comprehensive measures of body composition such as waist circumference, body fat percentage, and lean body mass along with body mass index. All these are measured by health professionals in a population-based sample. When controlling for health and functional status, we find very limited evidence for any independent influence of obesity on subjective well-being. This implies that the adverse effects of obesity on health and functioning are the primary explanation for the observed negative relationship between obesity and subjective well-being.