Explaining variation in individual fitness is a key goal in evolutionary biology. Recently, telomeres, repeating DNA sequences capping the ends of chromosomes, have gained attention as a biomarker for body state, individual quality, and ageing. However, existing research has provided mixed evidence for whether telomere length correlates with fitness components, including survival and reproductive output. Moreover, few studies have examined how telomere shortening correlates with fitness in wild populations. Here, we intensively monitored an insular population of house sparrows on Lundy Island, UK, and collected longitudinal telomere and life history data spanning 16 years from 1,225 individuals. We tested whether telomere length and/or shortening predict fitness measures, namely survival, lifespan, as well as annual and lifetime reproductive success. Telomere length positively predicted immediate survival up to one year after measurement, independent of age, but did not predict lifespan, suggesting either a diminishing telomere length – survival correlation with age, or other extrinsic factors of mortality. The positive effect of telomere length on survival translated to reproductive benefits, as birds with longer telomeres produced more genetic recruits over their lifetime, but not annually, suggesting variation in individual quality. The rate of telomere shortening, however, correlated with neither lifespan nor lifetime reproductive success. Our results provided further evidence that telomere length correlates with fitness, and they contributed to our understanding of how telomere dynamics link with individual quality.