Instagram is a popular social network platform that brings benefits to many. However, for a small minority, problematic use may be an issue of concern (i.e., Instagram addiction). This addiction appears to originate from various contexts and can also have psychosocial consequences. The present study investigated the basic psychological needs and psychological well-being and the mediating role of Instagram addiction. The sample comprised 660 participants who completed a number of psychometric scales including the: Instagram Addiction Scale (15 questions), Basic Psychological Needs Scale (21 questions), and Psychological Well-being Scale (18 questions). The results confirmed the fit of the model, and showed the direct adverse and significant effects of basic psychological needs on Instagram addiction, Instagram addiction on psychological well-being, and the positive and significant direct impact of basic needs on psychological well-being. There were also significant indirect effects of basic needs (autonomy, competence, and relatedness) in well-being via Instagram addiction. The failure to satisfy basic psychological needs appears to play an important role in the addictive use of Instagram, leading to a decrease in psychological well-being.