The association between ambient temperature and mental health has been explored previously. However, research on the psychological effect of temperature in vulnerable groups and neighborhood scales have been scarce. Based on the survey and temperature data collected from 20 neighborhoods in Guangzhou, China, this study estimated the association between ambient temperature and community mental health among the elderly, adopting a fixed-effects methodology. According to this empirical analysis, compared to a comfortable temperature range of 20℃–25℃, measures of worse mental health among elderly were significant in high and low temperatures with increases in negative outcomes observable at both ends of the temperature range, leading to the U-shaped relationship. Second, the association between ambient temperature and worse mental health was found in the subcategories of gender, income, and symptom events. Specifically, from the hot temperature aspect, elderly males were more sensitive than elderly females. The effect on the low was far more than on the middle-high income group, and the probability of each symptom of the elderly’s mental health significantly increased. From the cool temperature aspect, the temperature in the range of 5ºC–10ºC was significantly associated with the probability of some symptoms (feeling down, not calm, downheartedness, and unhappiness) and the middle-high income group. Our research enriches the empirical research on ambient temperature and mental health from a multidisciplinary perspective and suggests the need for healthy aging and age-friendly planning in Chinese settings.