The present study investigates the mediating role of Emotional Intelligence (EI) in the relationship between Occupational Stress (OS) and Job Performance (JP) among employees in selected Micro, Small, and Medium Enterprises (MSMEs) of Dharwad district, Karnataka. The study is grounded in Goleman’s Emotional Intelligence Model (2016) and the Job Demands–Resources (JD-R) framework (Bakker & Demerouti, 2017), which collectively posit that employees’ emotional competencies influence how stress impacts their performance. A quantitative research design was adopted, involving a structured questionnaire administered to 472 respondents selected through stratified random sampling. The study employed chi-square test and mediation analysis using to examine relationships among variables. Findings revealed that occupational stress negatively influences both emotional intelligence and job performance, while emotional intelligence positively affects job performance and partially mediates the relationship between occupational stress and performance outcomes. The results highlight the significance of emotional regulation, self-awareness, and empathy as buffers against stress-induced performance decline. The study underscores the managerial importance of fostering emotional intelligence through training programs, stress management initiatives, and supportive organizational practices tailored for MSME employees. It contributes to organizational psychology literature by validating emotional intelligence as a psychological mechanism that transforms workplace stress into adaptive performance behaviour.