The modern workplace has undergone substantial transformation due to globalization, technological innovation, organizational restructuring, and increasing competition. These developments have significantly influenced employees’ psychological experiences, particularly in terms of job satisfaction, occupational stress, organizational commitment, and psychological well-being. Public and private sector organizations differ considerably in their organizational structure, employment policies, job security, reward systems, career advancement opportunities, and work culture. Such differences may influence the psychological characteristics of employees and ultimately affect organizational effectiveness and employee productivity. The present study aimed to compare selected psychological traits among employees working in public and private sector organizations. A descriptive comparative research design was adopted. A total of 200 employees, comprising 100 employees from public organizations and 100 employees from private organizations, participated in the study through stratified random sampling. Standardized psychological instruments were employed to measure job satisfaction, occupational stress, organizational commitment, and psychological well-being. The collected data were analyzed using descriptive statistics, independent sample t-tests, Pearson’s correlation, and effect size analysis. The findings indicated that employees in public organizations demonstrated significantly higher levels of job satisfaction, organizational commitment, and psychological well-being compared to employees in private organizations. Conversely, employees in private organizations reported significantly higher occupational stress. Correlation analysis revealed positive associations among job satisfaction, organizational commitment, and psychological well-being, whereas occupational stress exhibited significant negative relationships with these variables. The findings emphasize the importance of creating psychologically healthy workplaces by promoting supportive organizational policies, effective leadership, stress management interventions, and employee development programs. The study contributes to organizational psychology by providing empirical evidence regarding psychological differences between public and private sector employees and offers practical implications for organizational management and human resource professionals.