The environment of workplace has received much attention in research in human resource literature. However, its impact on employee’s behavior such as stress has not been established widely. This research explores the relationship between stress and organizational climate among employees of a large manufacturing organization. A sample of 625 employees was selected using convenience sampling method to measure the level of occupational stress and organizational climate. Pearson’s correlation coefficient was computed to study the relationship between the two variables. To identify the predictors of occupational stress with organizational climate as a criterion, stepwise regression analysis was calculated. The findings indicate that there exists a negative significant correlation between the two variables under study. Regression analysis reveals that support system, decision-making, motivational level, and warmth as climate factors, significantly predict occupational stress. The findings are significant for management practitioners, organizational psychologists, and human resources personnel since it empirically directs them to focus on diagnosing the climate of the organization, especially giving importance to strengthen the support system and empowering employees with decision-making power which, if neglected, may cause stress to employees.