The aim of the study is to assess the impact of employee's performance appraisal system of Moha Soft Drinks S.C on its employee's motivation. To undertake this research, objectives and hypothesis were designed and assessed by mixed approach research study. To set background information on the proposed hypothesis the theoretical, conceptual and empirical related literatures were reviewed. In conducting this study, the required data had been obtained through partially adopted and self developed questionnaire. In data gathering, 200 questionnaires were distributed to the sampled employees. Among these 177 were returned and 23 responses were uncompleted. So the response rate of this study is 88.50%. Research Instrument test was conducted for reliability by Cronbach's coefficient alpha whereas validity by factor analysis. In the analysis descriptive statistics, correlation analysis and simple regression analysis were performed indicating that employees of Moha Soft Drinks S.C have low level of motivation towards the existing performance appraisal system and there is positive and significant relationship between the independent PAS and dependent motivational issues.On the basis of the findings, appropriate recommendations along with implications for further research have been forwarded.