Although outdoor air pollution has been associated with adverse health outcomes and decreased subjective welfare, there has been a lack of research investigating the potential risks associated with indoor unclean cooking energy usage from the perspective of subjective wellbeing. This paper systematically assesses the risks of unclean cooking fuel usage from the novel perspective of subjective welfare and examines the mediating role of perceived physical and mental health applying a large-scale nationally representative dataset. Analytical results demonstrate that the usage of unclean cooking energy has significantly negative impacts on subjective wellbeing, and this finding has been confirmed through various robustness tests. The mechanism behind this impact is that unclean cooking fuel usage reduces people's perceived physical and mental health status, which in turn decreases their subjective wellness. Furthermore, the negative consequences of using unclean cooking energy on subjective wellbeing are particularly pronounced among certain demographic groups, including older, lower educated, married individuals as well as those with lower economic status, uncovered by medical insurance and having less social capital. Findings of this study highlight the risks linked to unclean cooking energy usage, as evidenced in the negative impact on perceived health and subjective wellbeing. In light of the increasing focus on improving indoor environment as well as enhancing people's health and wellbeing, results of this paper emphasize the significance of promoting access to cleaner and healthier energy.