Purpose: The present study aimed to validate the Indonesian-language version of the psychological capital questionnaire (PCQ), specifically within the context of higher education, by utilising Rasch analysis to evaluate the reliability and validity aspect such as item-fit statistics, rating scale function, and differential item functioning of the instrument. These questionnaires are designed to assess students' initial psychological status, aiming to ease their transition from school to university and monitor undergraduate students' mental health. Design/methodology/approach: A total of 1,012 undergraduate students (female = 61.2%; male = 38.8%) from a university in Central Java, Indonesia completed the 24-item Indonesian version of the PCQ. The sampling technique used is quota sampling. Data were analysed using The Rasch model analysis, it was performed using the Winsteps 3.73 software. Findings: The results of the Rasch analysis indicated that the reliability of the instrument was good (a = 0.80), item quality was excellent (1.00), and person reliability was consistent (0.77). In the validity aspect, all four domains of the PCQ exhibited unidimensionality, and a rating scale with four answer choices was deemed appropriate. The study also identifies item difficulty level in each dimension. Practical implications: The practical implications of this study are beneficial for higher education institutions. They can use the validated Indonesian version of the PCQ to monitor the mental well-being of undergraduate students. Mapping the PsyCap can serve as a basis for developing and determining learning policies, potentially leading to improvements in student academic performance. The theoretical implications of this study are related to the advancement of measurement theory. By employing Rasch analysis, the study contributes to enhancing the validity and reliability of measurement, particularly in the context of educational and psychological assessment in Indonesia. Originality/value: This current study confirmed that the Indonesian version of PCQ adequately measures psychological capital in higher education, particularly in the Indonesian context.