This study analyzes the mental health of immigrants living in Germany relative to the mental health of the non-migrant German population. We focus on health in the second half of life by following women and men born between 1922 and 1950 throughout the years 2002 to 2010. Using data from the German Socio-Economic Panel Study, we apply linear regression techniques to examine mental health. Health was included in the questionnaire as SF12, a set of questions that address both physical and psychological dimensions. Our sample contains 28,967 observations in total, which were gathered in five survey waves from 7,220 respondents, around 15% of whom were immigrants. The immigrants in the sample come from a wide range of countries, including former migrant worker countries such as Turkey. Some of the immigrants are ethnic Germans from eastern Europe, while others were asylum seekers. Overall, the analysis shows that immigrants rate their mental health as being significantly lower than that of non-migrants. These results therefore provide evidence for the immigrant disadvantage hypothesis. These differences can be explained in part by differences in the socio-economic composition of the groupings. Moreover, our study finds variation between the immigrant groups, as the analysis shows that asylum seekers as well as immigrants from Turkey and from southern and southeastern European countries have lower mental health than non-migrants and ethnic Germans.