The saying “laughter is the best medicine” is explored in this chapter on humor and health. Though a large proportion of humor and health research is conducted in general contexts, empirical findings regarding the work context are growing in number. Employees’ and supervisors’ affiliative and self-enhancing humor styles were found to be related to employees’ mental health and work-related outcomes (e.g., performance, job satisfaction). Aggressive humor seems detrimental for outcomes in the work context, and self-defeating humor seems more relevant in general contexts of humor where it has been associated with less well-being and more anxiety/stress and depression. However, the role of cultural factors is largely unknown. Several physiological mechanisms can explain the link between humor and physical health. Among the potential mechanisms that link humor with health are the ideas that humor buffers the consequences of stressful events and facilitates social relationships by enhancing social support. Given that humor and health are related, future research should analyze whether improved mental health can explain the link between humor and performance.