<p>Drawing on the Conservation of Resources theory, this study examines a moderated mediation model to uncover how high-performance work systems (HPWS) influence employee work alienation. We advance a model where HPWS reduces work alienation directly but simultaneously exacerbates it through the mediating mechanism of psychological distress. Data were collected through a three-wave, time-lagged design (four-week intervals) from 524 managerial employees in Pakistan’s banking sector. Hypotheses were analyzed using Hayes’s PROCESS macro to estimate the direct, indirect, and conditional effects. Results reveal that while HPWS has a significant direct negative effect on work alienation, it also triggers resource depletion, increasing alienation via psychological distress. This means while HPWS provides structural resources, it simultaneously imposes cognitive costs. Furthermore, the findings support the moderated mediation model, identifying promotion focus as a critical boundary condition. Specifically, the positive relationship between psychological distress and work alienation, as well as the indirect effect of HPWS on alienation, are potent and significant for employees with low promotion focus. Conversely, for those with high promotion focus, these relationships become non-significant, suggesting that a high promotion focus acts as a vital psychological buffer, which does not necessarily eliminate distress but prevents it from degenerating into alienation. This study suggests that organizations should prioritize systemic wellness programs and support mechanisms tailored to employees who may lack the proactive motivational resources to navigate intensive work environments.</p>