The purpose of this study was to consider the contribution of intergenerational exchange to mental health. Using data from a national sample of Jewish Israelis age 60 and over with children (n = 1799), reciprocal and non-reciprocal exchange patterns were identified and examined in relation to respondents' scores on a 12-item mood scale. Multiple regression analysis controlled for the effects of socio-demographic background, need and intergenerational contact. Unbalanced exchange on the part of the respondents, whether giving more or receiving more, was unrelated to their current mental health. Equal reciprocal exchange was positively associated with mental health, albeit weakly. This positive effect was maintained despite the negative association of poor health with respondents' mental health and the positive association of income, education and contact with children. The analysis demonstrates that reciprocal intergenerational exchange may be a contributory factor to better mental health in later-life, and should be addressed as such.