Formation of a pseudoknot (PK) in the conserved RNA core domain in the ribonucleoprotein human telomerase is required for function. In vitro experiments show that the PK is in equilibrium with an extended hairpin (HP) structure. We use molecular simulations of a coarse-grained model, which reproduces most of the salient features of the experimental melting profiles of PK and HP, to show that crowding enhances the stability of PK relative to HP in the wild type and in a mutant associated with dyskeratosis congenita. In monodisperse suspensions, small crowding particles increase the stability of compact structures to a greater extent than larger crowders. If the sizes of crowders in a binary mixture are smaller than that of the unfolded RNA, the increase in melting temperature due to the two components is additive. In a ternary mixture of crowders that are larger than the unfolded RNA, which mimics the composition of ribosome, large enzyme complexes and proteins in Escherichia cob, the marginal increase in stability is entirely determined by the smallest component We predict that crowding can partially restore telomerase activity in mutants with decreased PK stability.