This thesis presents those factors that are found to mainly affect the satisfaction and stress levels of engineering students in Pakistan. Students form different public and private sector engineering universities of Punjab are selected for this purpose. Data is randomly collected with the help of two surveyors. Reliability of the two surveyors is confirmed with the help of Measurement System Analysis. Questionnaires are based on students’ expectations from their respective institutions. Randomly collected data is analyzed on software MINITAB 14. Six sigma techniques of Measurement System Analysis, Affinity diagram, Pareto analysis, SIPOC (Supplier Input Process Output Customer) analysis, Cause and Effect Matrix, Scatter plots and Person correlation co- efficient are used for reaching the most significant factors. Results indicate that teaching skills of teachers are found to mainly affect the satisfaction level of engineering students. On further probe, it is observed that communication and interactive skills are the most vital teaching skills that influence the student satisfaction. Further elaborating the communication skills, it is revealed that interactive behavior of teachers and their clear concepts deeply affect the satisfaction level of students. Similarly, careless marking by the teachers are found to produce maximum stresses among the male engineering students, while, on the other hand, teachers’ discouraging attitude to take girls on industrial trips and their lack of conducting class tests are responsible for developing stresses among female engineering students. Moreover, poor command of English language as well as lack of personal confidence are some of the factors that are found to create maximum stresses in the students belonging remote and backward areas of Pakistan. Improvement strategies are then developed to enhance the communication and interaction skills of teachers. Significant increase in the satisfaction level of the students is observed after the implementation of the strategies. Identification of these factors can guide the educational leadership of these institutions to precisely focus their resources in the above mentioned factors for the best satisfaction of their students, as it will certainly improve the transfer and creation of knowledge among these students.