Women with mental illness (MI) face a number of risks and challenges, yet also have unique strengths that enhance their coping and resilience. Research in psychology has found character strengths to improve quality of life, subjective life satisfaction, and well-being. However, more research is needed to identify the strengths of women with MI in particular. The present qualitative study was conducted to address this gap in the literature, and characterize the strengths of women with MI. Grounded theory methodology was used to analyze the interviews from 20 women with MI. Data analysis led to the identification of 5 themes: stereotype utilization, survivorship strength, mental health sisterhood, working the system, and the inherent strength of womanhood. Several strengths of women with MI incorporated lessons from management of double stigmas and oppressive institutions, as well as strategies that emerged to convert barriers into advantages. Other strengths involved fortitude and empowerment from socialization around their gender, in addition to relational values and abilities. Findings suggest the value of strengths-based psychosocial rehabilitation interventions for this group to support the recovery of women with MI, and the need for public policy to prevent trauma and stigmatization of women with mental illness. © 2022, The Author(s), under exclusive licence to Springer Nature India Private Limited.