The increasing share of the elderly indicates that people are entering old age. However, paying attention to quantitative dimensions alone is not enough, and ensuring the quality of life and dignified life of the elderly is a prerequisite for policymaking. Understanding the meaning of dignified life by the elderly can help identify their needs. This research, focusing on the life world of the elderly, explores the meaning of dignityand happiness in their lives.Using a qualitative research design and a systematic grounded theory approach, twenty elderly residents of Shahedieh were selected through theoretical sampling. Data were collected through in-depth interviews and analyzed using grounded theory procedures, including open, axial, and selective coding. The main categories derived from the analysis include: “quality interactions,” “utopian living,” “emotional-relational security,” “the striving self,” “personal flexibility,” “spirituality,” and “ethical living.” Based on the findings, the best definition of a dignified life is “creating a self-constructed safe space.” Overall, the elderly participants’ interpretations of a dignified life can be summarized in four core concepts: Calmness (Ārāmēsh), Comfort (Āsāyēsh), Compatibility (Sāzēsh), and Striving (Kūshēsh). In other words, from their perspective, a person who strives to be self-reliant from a young age, demonstrates effort and perseverance, is content and adaptable, and lives in an environment where they feel calmness and comfort, they will achieve a dignified lifespan. Furthermore, the participants believed that a dignified life is the outcome of an individual's efforts toward a dignified existence, accompanied by faith and reliance on God.