Objective To investigate the current status of psychological capital and death literacy among nurses in primary health care, and to explore the relationship between the two and the factors influencing them. Methods A stratified sampling method was employed to select 1,700 nurses from 22 counties (cities and districts) in Chengdu as the study subjects. A cross-sectional survey was conducted using a demographic questionnaire, the Death Literacy Index Scale, and the Nurses’ Psychological Capital Scale. Statistical analysis was performed using SPSS 26.0, employing Pearson’s correlation analysis and multiple linear regression analysis. Results A total of 1,524 valid questionnaires were returned, yielding a response rate of 89.6%. The mean total score for psychological capital among nurses in primary health care was 144.61 ± 17.08, with a mean item score of 4.83 ± 0.57; the mean total score for death literacy was 203.94 ± 33.05, with a mean item score of 7.04 ± 1.13; psychological capital was positively correlated with death literacy (r = 0.602, P < 0.01)，and positive correlations were also observed between their respective dimensions. The multiple linear regression analysis revealed that age, number of children, experience of caring for patients at the end of life, experience of caring for deceased relatives, receipt of life-and-death education training, and the dimensions of hope, collaboration, responsibility and self-confidence within psychological capital were independent predictors of death literacy among nurses (P < 0.05). Conclusion Nurses in primary health care exhibit high levels of psychological capital and above-average levels of death literacy. It is recommended that primary health care strengthen training in psychological capital for nurses to alleviate death-related stress, implement tiered and progressive death education programmes, and incorporate death literacy training into compulsory continuing education credits to better address issues surrounding death.