This inquiry explored whether everyday conversational humor is linked to job satisfaction, and if the relationship is mediated by positive affect. It also examined differences between the roles of humor production and humor appreciation, and tested the cyclical nature of the relationship by exploring whether job satisfaction stimulates ensuing humor. Data were acquired via an experience sampling study in which participants completed two brief surveys each day for 10 consecutive workdays (Level 1 n=237–279, Level 2 N=35). Results disclosed a positive relationship between humor and job satisfaction that was partially mediated by positive affect, and also pointed out that job satisfaction on day t forecasted humor production the morning of day t + 1. This inquiry adds to the literature by exploring the formerly theorized but untested hypothesis that humor’s effects stem from their impact on affect, and also by examining the distinction between humor production and appreciation.