The main purpose of this study was to investigate the impact of challenge and hindrance stressors on work outcomes. In addition to this, the mediating role of employee job satisfaction and moderating role of Islamic Work Ethics in the context of banking sector of Pakistan have also been checked. Structured questionnaires from previous literature were adopted to collect the primary data. With time lagged, two sources data was collected by simple random sampling technique. In first phase, data was collected form employees regarding challenge and hindrance stressors, job satisfaction and Islamic Work Ethics. While in the second episode data regarding Job performance and OCB of employees was collected from their respective supervisors/Boss. Data was collected from officer ranked employees working in Public and Private sector Banks. Out of 1180 distributed questionnaires, 465 useable questionnaires were returned, yielding a response rate of 39%. Results were obtained by using SPSS. Descriptive analysis, correlation, and simple regression analysis were used to analyze data. Mediation analysis was performed with the help of process macros and moderation analysis by steps wise regression. The result indicated that Challenge Stressors have positive relationship with Job Satisfaction, Organizational Citizenship Behavior and Employee Job Performance. In case of Hindrance Stressors, it was found that Hindrance Stressors have negative impact on Job Satisfaction, Organizational Citizenship Behavior and Employee Job Performance. Moreover, Islamic work ethics has positive relationship with Job Satisfaction was supported; whereas the positive impact of Job Satisfaction on Job Performance and Organizational Citizenship Behavior were also confirmed. Further, results indicated that Job satisfaction partially mediates the relationship between Challenge Stressors and Job Performance and OCB. In case of Hindrance stressors Job Satisfaction mediated the relationship between Hindrance stressors and Job Performance and OCB. Lastly, this study explored the moderating effect of Islamic Work Ethics in a link between Challenge Stressors and Job Satisfaction. Contrary to the proposed hypothesis, the moderating role of Islamic Work Ethics was found insignificant between Hindrance stressors and Job Satisfaction. The results of this study have been conversed in the light of past studies, managerial implications have been given and future avenues have also been suggested.