Introduction: Menopause is associated with a variety of physical and mental issues. It’s critical to pay attention to postmenopausal women’s health issues and develop prevention strategies. Aim: To evaluate association between physical activity and physical and mental health problems in postmenopausal women. Materials and Methods: In the present systematic review, relevant studies were searched in international electronic databases such as, Cochrane Central Register of Controlled Trials (CENTRAL), PubMed and Google Scholar from 2004 to 2021. Terms like physical activity, physical health, mental health, bone mineral density, exercise training, and postmenopausal women were searched. All papers were screened for eligibility. Inclusion criteria of the study was, studies with atleast one exercise group versus one control group, should include women who were postmenopausal at the time of the study, studies that examined effect of physical activity on physical and mental health of postmenopausal women, full text articles written in English language. Results: Total 27 studies were included in the present review. The results revealed that resistance, aerobics, walking, pilates and aquatic exercises have shown benefits in improving physical and mental health parameters of postmenopausal women. Conclusion: Physical activity plays a great role in maintaining overall health and Quality of Life (QOL) of Women. To avoid fractures, these women should engage in workouts with prudence. Physical and mental fitness can be achieved by incorporating exercise into daily routine of postmenopausal women.