Industrial odour is a common pollution concern raised with local regulatory authorities, with communities citing impacts to their mental health and wellbeing. We performed a systematic review to determine if industrial odours are associated with psychosocial wellbeing in nearby communities. PubMed, Medline, PsycINFO, and Web of Science were searched for peer-reviewed articles published between 2003 and 2023, assessing associations between industrial odour and psychosocial wellbeing (mental health or quality of life). Critical appraisal of the studies was conducted using JBI’s assessment tools. We undertook a narrative synthesis of results. After screening, 13 articles met the inclusion criteria: 11 cross-sectional and 2 longitudinal studies. Sample sizes ranged from 23 to 25,236 participants. Odour exposure was assessed through self-reported measures (intensity, annoyance) and objective measures (proximity to source, odorous chemical concentration). Psychosocial health outcomes included stress, psychological distress, quality of life, depression and anxiety. Of the 13 studies, 11 identified an association between odour exposure and poorer psychosocial wellbeing, with the strongest evidence relating to quality of life. However, the critical appraisal identified quality issues with most studies. The findings suggest that industrial odours may be associated with poorer psychosocial wellbeing for nearby residents, particularly in terms of quality of life. Future research using consistent objective and subjective measures of odour exposure, and prospective data collection, would strengthen the quality of the evidence.