Objective: This study aimed to test the direct and indirect effect of social capital on psychological well-being, the mediating effects of basic psychological need satisfaction and sports identity respectively, as well as their chain mediation among student-athletes. Participants: We investigated college athletes from Jiangsu and Yunnan provinces in China's eastern and western regions (n = 822). Methods: Structural equation modeling approach with bootstrapping analysis was used to test the hypothetical relationships. Results: Social capital was positively associated with psychological well-being both directly and indirectly. The mediating roles of need satisfaction and sports identity were examined between social capital and psychological well-being, respectively. Besides, the chain mediating path of psychological need satisfaction and sports identity was confirmed. Conclusions: Findings demonstrated that universities were expected to use multiple strategies to improve students' social capital, fulfill their psychological needs, and reinforce the sense of honor with sports identity. In addition, the National Collegiate Athletic Association (NCAA) and higher education institutions in the United States should offer specific support to students from culturally diverse backgrounds to address their unique needs effectively.