The Minority Stress Model (Meyer, 2003) has made it possible to explain how sexual prejudice produces negative effects on the health and wellbeing of people belonging to sexual minorities, through distal and proximal stressors. A qualitative study was conducted to investigate the effects of sexual prejudice on the mental health of transgender adults in Chile. Semi-structured interviews were conducted with 17 transgender people, both male and female, in four cities of the country. The results allow us to identify the presence of distal factors associated with overt discrimination, as well as, proximal factors associated with the experience of stigma and its effects on self-concept. Finally, effects on mental health are described, among which the presence of anxious-depressive symptomatology, suicidal ideation and attempts, self-injurious behavior and consumption of alcohol and other substances.