Background: Interventions that promote exercise and a healthy diet can improve quality of life and may promote recovery for people with mental health issues. The aim of this study was to evaluate a community-based lifestyle program for adults with mental health issues to inform the design of such interventions, and assess its impact on quality of life and recovery. Methods: Mixed methods were used to evaluate 8-week interventions involving weekly group gym-based exercise sessions and nutritional education. Programs were delivered by personal trainers and chefs at a charitable community organization. Acceptability was evaluated using qualitative focus groups and procedural statistics (rates of referral, attendance, and withdrawal). Primary outcomes were quality of life and recovery assessed at baseline and post-intervention; other outcomes included metabolic indicators (weight, waist, blood pressure and fasting glucose, cholesterol, triglycerides) and functional capacity (walk test). Results: Of the 100 adults referred, 58 began the program and 38 (66%) completed, attending a median of 75% of sessions. Participants indicated that their appraisal of the program environment (related to venue, social group, and staff), and the realization of benefits, were essential to their experiences with the program. Quality of life (mental health, coping, relationships, senses and self-worth), and recovery (hope) significantly improved. Conclusion: Exercise and nutrition interventions have diverse benefits for quality of life and recovery. Programs should be implemented within contexts that promote positive experiences and inclusive social environments to foster self-worth, personal confidence and hope. Recovery-oriented lifestyle interventions should be utilized routinely in mental health care.