Objective: To examine the role of music and social contact on exercise benefits. Methods: Two hundred twenty-nine (n229) students were randomly assigned to one of 6 conditions: biking alone with iPod or friend in a laboratory, walking alone with iPod or friend outdoors, or biking or walking alone in control conditions. All participants completed 20 minutes of exercise at 70 of their maximum target heart rate. Results: Exercising in control conditions indoors resulted in a more relaxed and calm response. Exercising outdoors was more enjoyable and resulted in less tension and stress. Conclusions: Exercise environment impacts psychological benefits of exercise.