This study determines the nature and extent of positive spillover between work and family in case of female nurses in Jammu & Kashmir, India. The relationship is construed along three dimensions, namely, affective positive spillover, behavior-based instrumental positive spillover, and value-based instrumental positive spillover in both the directions of work to family and family to work. The work-life positive spillover (WFPS) is examined with respect to life satisfaction and psychological well-being (PWB) of female nurses. A survey was conducted using a questionnaire among female nurses in seven government-run hospitals in Jammu & Kashmir in North India. A total of 311 data points were gathered through random sampling. SPSS is used for analyzing data. Hypotheses were tested through SEM using AMOS 24 and in addition to Pearson correlation, Cronbach’s alpha test, and descriptive statistics were used to draw out the inferences. The findings show that WFPS has a considerable impact on the PWB and life satisfaction of female nurses. This impact varied according to the aspects of spillover, with value-based instrumental positive spillover being most important in the case of psychological well-being and affective positive spillover being most significant in the case of life satisfaction. Thus far the relationship between work and life has been construed as being in conflict which thus has influenced the labor policy formulation in case of nurses and healthcare. A more holistic policy framework must also consider the positive relationship between work and life that this work has posited.