We investigated the impact of psychological capital (PsyCap) on supervisory-rated innovative performance and job stress. Data collected from a diverse sample (N = 237 paired responses) of employees from various organizations in Pakistan provided good support for the hypotheses. The results indicate that PsyCap is positively related to innovative job performance and negatively related to job stress. High PsyCap individuals were rated as exhibiting more innovative behaviours by their supervisors than low PsyCap individuals. Particularly, we found that high PsyCap individuals (...) were more likely to generate, acquire support for, and implement novel ideas in their workplace. Similarly, individuals with high PsyCap reported lower levels of job stress as compared to their low PsyCap counterparts. (shrink)