Drawing on positive activity model , the present study aims to examine the relationship of employees’ compassion for others and the level of workplace happiness whilst investigating mediating mechanism of positive affectivity. The study further explores the role of perceived organizational support (POS) in bolstering the happiness of the employees. Using the purposive sampling technique, a sample of the Indian working population (N = 422) was selected for the study. Standardized instruments were administered to the respondents for data collection. Structural equation modeling findings revealed that the employees who showed more compassion toward others experienced a higher level of happiness at work. The results indicated that the positive emotions acted as a significant mediator in this relationship. The PROCESS macro analysis showed that the POS moderated the link between compassion and workplace happiness for the employees in a positive direction. The study highlights the importance of performing intentional positive activities for the better well-being of the employees. The implications of the study in terms of practicing positive psychology for creating thriving modern organizations are discussed.