The present study was conducted to examine the role of poverty on mental health using a sample of 520 young adults from rural areas in the Ogun East Senatorial District and the impact of this on sustainable community development. An ex post facto survey research design was employed. The instruments used for data collection included the Mental Health Inventory - 5 (MHI-5), and Multidimensional Poverty Index Questionnaire (MPIQ).Correlation coefficients and simple linear regression analysis were employed at the .05 level of significance to test the two hypotheses formulated for this study. Results showed that poverty level will significantly predict mental health (t = 12.673, p < .05) and that poverty is significantly and negatively related to mental health (r = -.413, p < .05). It was recommended, among other things, that governments should positively intervene in the macro-economy by creating an economic environment that empowers citizens, reduce poverty, and promote mental health.