This study aimed to investigate the relationship between perceived stress and employee performance, along with the moderating role of gender among bank employees (from private and public sector banks) in Azad Jammu and Kashmir (AJK). Standardised scales were used to assess perceived stress, its subcomponents (perceived helplessness and lack of self-efficacy), and employee performance. Descriptive statistics, Pearson correlation, independent-samples t-tests, and moderation analysis were conducted to analyse the data. The results revealed a significant negative correlation between perceived stress and employee performance, confirming that higher stress levels are associated with decreased work performance. Significant gender differences were found, with female employees reporting higher perceived stress than male employees. Moreover, gender moderated the relationship between perceived stress and employee performance, indicating that the negative impact of stress was more substantial for females. These findings emphasise the importance of implementing gender-sensitive stress management strategies in the banking sector. The study contributes to the literature by exploring gender as a moderating factor. It suggests that future research examine other potential moderating variables, such as work-life balance or organisational support. Overall, the research highlights the need for targeted interventions to enhance employee well-being and optimise performance under stressful work conditions.