Although job burnout is common at workplace, few studies explored positive resources for contesting burnout in this population. This study aims to explore the relationship between stress and burnout, and particularly the mediating role of psychological capital. A deductive technique has been used in this study. A closed end questionnaire that included survey regarding stress and burnout and psychological capital has been received from 300 respondents. SPSS software was used to explore the moderating role of psychological capital in the relationship between stress and burnout. This study provides the evidence that each person up to an extent has a capacity to bear the stress and when it goes beyond limits it results in burnout. This level varies from person to person, some people retain high level of stress while some people have low capacity to sustain the built up pressure of stress. Psychological capital plays a crucial role in shaping the person’s level of stress. Results indicate that psychological capital weakens the known positive relationship between stress and burnout. This study implies that Psychological capital may serve as a potential positive resource in reducing the negative effects of stress among faculty members. This study high lights the need of interventions to nurture the psychological capital of faculty members Supervisor:- Dr. Hassan Rasool