Organizational happiness is recognized across many cultures as a key component of human interaction and employee experience, and its importance becomes even more pronounced in complex and high-pressure environments such as airports. Given the critical role of employee happiness and well-being in enhancing operational performance and passenger-centered service quality, the present study aimed to develop a model of organizational happiness at Baghdad International Airport. This research is applied in purpose and employs a mixed-methods design. In the qualitative phase, the grounded theory approach was used to conceptualize the components of organizational happiness, and semi-structured interviews were conducted with 12 managers, supervisors, and key staff members. Through three-stage coding, a comprehensive set of concepts was extracted and categorized into major and subcategories related to individual, interpersonal, structural, and environmental factors. In the quantitative phase, a researcher-made questionnaire derived from the qualitative findings was administered through a survey to assess the goodness of fit of the proposed conceptual model. The structural equation modeling results confirmed the adequacy of the model and supported all research hypotheses. The findings provide valuable insights for improving the work environment, strengthening employees’ psychological capital, enhancing operational efficiency, and promoting service quality at Baghdad International Airport.