Interest in the psychosocial dimensions of adaptation to limb amputation has grown at a tremendous rate in recent decades as increasing emphasis is placed on understanding the complexity of the lived experience of amputation at personal, social, and cultural levels. The multidimensional nature of psychosocial adjustment and indeed the lack of a clear definition of ‘optimal’ adaptation have stimulated investigation of a diverse range of indicators of psychosocial status. This burgeoning literature reflects considerable inconsistencies and ambiguities in terms of methodology and sampling, and evidences equivocal conclusions thus severely limiting generalisability. This review critically summarises extant research on post-amputation psychosocial well-being and determinants of psychosocial adaptation, including post-amputation pain, health-related quality of life, depression and anxiety, coping responses, and the psychosocial dimensions of prosthetic provision. The primary objective is to clarify the state of knowledge in this domain and highlight issues of relevance for future research.