This study examined the relationship between workplace stress and job satisfaction among employees of Mityana Town Council, Uganda. Workplace stress is a pervasive feature of modern work and a recognised threat to employee wellbeing and job satisfaction, yet its effects among Ugandan local government employees remain under-examined. The study investigated how workload pressure, role ambiguity, work-life conflict, and interpersonal strain relate to job satisfaction. A cross-sectional survey design with a mixed-methods approach was adopted, and data were collected from 165 respondents comprising staff across departments using structured questionnaires and interviews. Descriptive statistics, exploratory factor analysis, Pearson correlation, and structural (path) analysis were used. Factor analysis confirmed the construct validity of the stress dimensions, which loaded onto coherent factors and explained 67.8% of the variance. The results revealed a strong negative and significant relationship between workplace stress and job satisfaction (r = −0.66, p < 0.01), with the stress dimensions jointly explaining 64.0% of the variance in job satisfaction (R² = 0.640). Work-life conflict (β = −0.31) and workload pressure (β = −0.29) emerged as the strongest path predictors. The study concludes that workplace stress significantly reduces job satisfaction and recommends measures to manage workload, clarify roles, support work-life balance, and improve workplace relations.