The concept of demoralization has always been controversial. Some question its value while others claim its usefulness in explaining non-specific psychological distress. This study used a set of standardised self-report scales including a Demoralisation Scale (DS) to examine the degree of psychological distress among a sample of 100 resettled refugees and migrant people from refugee-like backgrounds residing in Australia and New Zealand. A primary aim of the study was to determine whether demoralisation might offer a more relevant diagnosis than clinical depression for this population. A second aim was to explore whether clinical and non-clinical cohorts demonstrated similar rates of demoralization, and how other factors associated with forced migration and resettlement affected these rates. It was not possible to determine a clear distinction between symptoms of depression and demoralization, however, in cases of minimal or mild depression, it appears the DS may have applicability as a measure of non-specific distress that spans a spectrum from mild disheartenment through to total despondency.