This qualitative research paper analyzed how the social stigma has affected the mental health of the transgender population in Punjab, Pakistan, and how the effects of the social stigma can be mitigated through coping. Based on Minority Stress Theory and Transgender Stigma Framework, semi-structured interviews were carried out in-depth with 11 transgender people (khwaja sira) in urban parts of Punjab. Thematic analysis has found that the experiences or feelings of familial rejection, social harassment, and institutional discrimination were widespread. The effects of this stigma were depression, anxiety, low self-esteem, and suicidal thoughts. There were also the internalized stigma and unremitting fear of being excluded. Despite these problems, good community ties, peer support, the guru-chela system, and achieved celebrity as major resilience processes. The results show the necessity of urgency in stigma reduction programs, inclusive healthcare services.