Performance appraisal is an essential practice in human resource management that allows organisations to assess employee performance, identify areas for development, and enhance organizational effectiveness. A well-structured performance appraisal system not only boosts employee productivity but also plays a crucial role in increasing employee satisfaction by fostering fairness, recognition, motivation, and opportunities for career growth. This study investigates the connection between performance appraisal practices and employee satisfaction among the workforce at TNPL, Tiruchirappalli. Utilizing a quantitative research methodology, the study employs a descriptive research design. Primary data were gathered through a structured questionnaire distributed to 120 employees, who were selected using a simple random sampling method. The questionnaire assessed employees' views on various aspects of performance appraisal practices, including fairness of appraisals, quality of feedback, transparency, recognition, career development opportunities, and overall employee satisfaction. Statistical methods such as percentage analysis, descriptive statistics, reliability analysis, correlation analysis, independent sample t-tests, one-way ANOVA, multiple regression analysis, and Structural Equation Modelling (SEM) were utilised to explore the relationships among the variables under study. The results indicate that employees generally perceive the performance appraisal practices at TNPL positively. Furthermore, the study uncovers a positive and statistically significant correlation between effective performance appraisal practices and employee satisfaction. Factors such as fairness in evaluations, timely feedback, transparent appraisal processes, recognition of employee contributions, and opportunities for career progression were identified as having a significant positive impact on employee satisfaction.