The study aimed at identifying the sources of stress, and investigating their effects on job satisfaction and psychological distress among 106 university teachers (86 males, 20 females) from four tertiary institutes in Hong Kong. Another purpose of the study was to examine the moderating effect of locus of control on stressor-strain relationships. A factor analysis of the faculty stressors revealed six factors: recognition, perceived organizational practices, factors intrinsic to teaching, financial inadequacy, home/work interface, and new challenge. A series of stepwise multiple regressions demonstrated that recognition, perceived organizational practices, and financial inadequacy were best predictors of job satisfaction, whereas perceived organizational practices and home/work interface were the best predictors of psychological distress. Further, external locus of control was associated with low job satisfaction and psychological distress. A series of hierarchical moderated regressions demonstrated a moderating effect of locus of control on some of the stressor-strain relationships.