Formerly incarcerated individuals face significant psychological and social barriers during community reentry, yet the role of existential isolation (EI) in this process remains understudied. This longitudinal study examined the relationships among internalized stigma, anticipated stigma, EI, psychological distress, and recovery capital (RC) over a 6-month follow-up period. Anticipated stigma, but not internalized stigma, was consistently associated with higher EI, greater depression and anxiety, and lower RC. Serial mediation analyses indicated that anticipated stigma indirectly reduced RC through EI and psychological distress. These findings identify EI as a potential barrier to successful community reentry and suggest that interventions targeting anticipated stigma and EI may improve psychological well-being and strengthen RC.