ABSTRACTThis study examined the impact of occupational stress on psychological well-being looking at the mediating role of psychological capital (PsyCap) in the occupational stress and psychological well-being relationship. Using a cross-sectional survey design, data was collected from 290 participants. The collected data was analyzed using a Pearson r test and hierarchical regression. Analysis of the data showed that psychological well-being (PWB) related negatively with occupational stress and positively with PsyCap. It was also found that PsyCap mediated fully the relationship between occupational stress and PWB thereby rendering nonsignificant the negative effects of occupational stress on PWB. In addition, the study found that, efficacy, hope, resilience, and optimism (components of PsyCap) mediated partially the occupational stress–PWB relationship thereby reducing the negative effect of occupational stress on psychological well-being. It is concluded that PsyCap has the ability to buffer the negative consequences of occupational stress on psychological well-being.