Urban areas in Benin are characterized by a significant informal sector workforce contributing to local economies. However, limited research exists on the psychological well-being of individuals within this sector. Qualitative data was collected through semi-structured interviews conducted in urban areas of Benin. Participants were selected based on their involvement in the informal sector. Participants reported experiencing higher levels of job insecurity (75%) compared to formal sector workers, which significantly impacted their psychological well-being. The study highlights the critical role of community support networks as a coping mechanism for informal sector workers facing economic instability and stress. Organizations should develop targeted interventions focusing on mental health support for urban residents in the informal sector to mitigate negative impacts on well-being.