As China’s population aging accelerates, elderly care institutions, as an important part of social elderly care, bear the significant responsibility of providing living care, medical nursing, and rehabilitation services for the elderly. They also bear the responsibility for the elderly’s daily life and psychological well-being. Caregivers in elderly care institutions are the primary caregivers for the elderly, and their unique work patterns lead to numerous challenges in their work, causing continuous accumulation of psychological pressure. This not only affects their physical and mental health but also negatively impacts the quality of elderly care services. This paper, through literature review and field research, analyzes the sources of psychological pressure for caregivers in elderly care institutions, explores the current state of their psychological pressure, and proposes effective psychological adjustment strategies to improve the mental health of caregivers and enhance the quality of elderly care services.