Personal stigma towards late-life depression, a barrier to help-seeking for older adults, may be reduced by improved depression literacy. This study adopted a pre-and-post-test design to investigate the relationships between types of depression literacy and stigma reduction. We recruited 976 older adults aged greater than or equal to fifty for a mental wellness education programme. The results of paired t-tests showed that the education programme improved participants’ depression literacy and reduced personal stigma. Their knowledge about symptoms (t = 9.10, P < .01) and facts (t = 3.05, P < .01) of depression were improved, while the myths of depression (t = −6.05, P < .01), stereotypes (t = −9.47, P < .01), prejudice (t = −6.66, P < .01), and discrimination (t = −5.60, P < .01) to late-life depression were reduced. We explored the change mechanism between depression literacy and personal stigma by multivariate regression analyses using residual scores. The significant association between depression literacy and personal stigma at baseline was not surprising. After the intervention, we found that enhanced knowledge about symptoms predicted decreased stereotypes (β = −0.13, P < .01). The decreased myths about depression contributed to the reduced stereotype significantly (β = 0.18, P < .01). Knowing more facts predicted increased prejudice (β = 0.08, P < .05). Future prevention and intervention for depression stigma may focus on knowing more about symptoms, interpreting facts cautiously, and debunking myths about depression.