Employee happiness has emerged as a critical determinant of employee productivity in the modern workplace. The current study aims to understand the concept of the Employee Happiness Index and its impact on the Employee Performance in the apparel industry. The research methodology followed for this study was descriptive research. The primary data collection method followed for the study was a structured questionnaire administered to 100 employees through the convenience sampling method. The data analysis tools used for the current study include percentage analysis, independent sample t-test analysis, One-way ANOVA F-test analysis, and correlation analysis. The findings of the current study reveal that nearly half of the employees belong to the age group of 40-49 years. Furthermore, the findings reveal that the employees are predominantly female employees. The results of the analysis also reveal that most of the demographic variables do not show significant results with the Employee Happiness Index. Only a few variables have shown significant results. Moreover, the results of the correlation analysis showed that only a weak relationship existed between demographic variables and employee happiness/performance. The conclusion that can be made from the study is that improving working conditions, positive working relationships, and work-life balance can significantly improve employee happiness and performance.