Happiness is perceived as most common and understandable term but its meanings as understood by many researchers tend to vary a lot and require further elaboration. As a common impression and as narrated by gurus its importance could be understood by a simple statement “happiness is an ultimate desire of human beings”. So, in field of research this term also makes a lot of progress. Instead of being most common and known term, its concepts carry huge confusions. This research entails two separate studies. First study regards to the conceptualization of happiness in local context and development of a customized measure. In the second study, the effect of happiness on task performance is validated. First study is based on literature review and in-depth interviews with people representing different walks of life to explore how happiness is being understood. It is identified that happiness should be conceptualized as long and lasting emotion. It is further identified that and explains that instead, happiness exists in numerous forms but meaningfulness and morality happen to be are the two basic components that constitute happiness in human beings. As a meaningful life, along with following moral values constitutes no guilt/regret, which ultimately makes a person happier for a long period of time instead of things like money, recognition, achievements etc. which constitutes momentary happiness and are important to a person for short period of time. Moreover, best trait a happy person carries is that happy individual lives in present without thinking about past or worrying about future, this increases focus of an individual and ultimately happy individual performs better. In the second study relationship of happiness with task performance was validated. Results indicate that happiness has positive relationship with task performance. Interestingly, mindfulness does not mediate this relationship that is contrary to my initial conceptualization. Implications of these findings and future research perspectives on happiness are discussed. Supervisor:- Dr. Hassan Rasool