Psychosocial interventions are increasingly embedded in chronic illness care, yet their effects are often interpreted as if intervention label, psychological mechanism, adaptation outcome, and implementation context were interchangeable. This review examined how psychosocial interventions influence adaptation and quality of life, which mechanisms are plausibly active, how effects vary across chronic conditions and delivery formats, and what limits translation into routine care. A systematic review was conducted using a bounded PubMed-oriented search executed on 2 September 2026 across six predefined query families spanning transdiagnostic chronic illness, chronic pain, diabetes, cancer, disease-specific conditions, and digital/implementation evidence. PRISMA 2020 guided selection reporting. Because intervention, population, comparator, outcome, and follow-up heterogeneity precluded a defensible omnibus meta-analysis, findings were synthesized using structured synthesis principles. Mechanisms, delivery characteristics, patient-reported outcomes, durability, contextual modifiers, and implementation conditions were coded separately. Seventy-two records were retrieved; three duplicates were removed, 69 unique records were screened, 45 underwent source-level eligibility assessment, and 29 evidence units were retained for the effectiveness/mechanism synthesis. Evidence supported benefits for selected psychological, behavioral, and quality-of-life outcomes, but effects were uneven across conditions, comparators, delivery modes, and follow-up periods. Mechanism evidence was strongest for constructs such as psychological flexibility, acceptance, cognitive change, self-efficacy, and guided engagement, although process change did not consistently translate into durable quality-of-life or biomedical improvement. Psychosocial intervention effectiveness is better understood as a mechanism–context configuration than as a property of a named treatment or delivery technology. Translation requires alignment among patient need, active process, outcome target, delivery support, and organizational conditions.