There is increasing recognition in research of the role of creative activities in mental health recovery empowering the management of daily living and enhancing well-being and personal growth. Creative activities can generate psychological, physiological, and social responses that are themselves causally linked with health outcomes. Purpose: This study aimed to explore to what extent and in which way people with severe mental illness experience well-being, performance, and satisfaction with daily living when participating in creative activities as intervention. Materials and methods: A sequential mixed-methods design was applied. Data was obtained at two measurement points two-three weeks apart using the WHO-5 questionnaire and COPM questionnaire from a sample of 33 participants participating in interventions with creative activities. In addition, eight of the participants took part in qualitative semi-structured interviews, and data was analysed using content analysis on a manifest level. The quantitative data was processed using descriptive statistics, paired t-tests and Kendall’s tau-b for correlations. Result: Participation resulted in improved self-rated well-being (17. 70. p < 0.0001), self-perceived occupational performance of daily living (1.40, p = 0.001), and satisfaction with occupational performance (2.05, p < 0.0001). The changes in well-being and daily living were explained by a work-like content and structure, positive intrapersonal and social acceptability experiences, and greater self-esteem due to the experience of being an artist. Conclusion: This study contributes with knowledge about participation in creative activities as intervention even for a short period enables well-being, and performance and satisfaction with daily living for people experiencing severe mental illness.