Innovation is essential for the success and sustainability of organizations. This study investigates the novel relationship between work stress and innovative work behavior among employees in China's manufacturing sector, focusing on the mediating roles of psychological resilience and work engagement. Data were collected from 307 manufacturing employees using an online survey conducted between June 1, 2024, and July 15, 2024. The results reveal that work stress significantly impairs innovative work behavior (β = −0.25, p < 0.01). Furthermore, psychological resilience (β = −0.21, p < 0.01) and work engagement (β = −0.22, p < 0.01) were found to partially mediate this relationship, emphasizing their role in mitigating the negative impact of work stress on innovation. Methodologically, multiple regression analysis and mediation analysis using the PROCESS macro for SPSS were employed to test the hypotheses. These findings suggest that manufacturing organizations should prioritize strategies to reduce work stress, enhance psychological resilience, and boost work engagement to foster a more innovative workforce. This research contributes to the existing literature by elucidating the mechanisms through which work stress affects innovation and provides practical recommendations for improving innovation management in the manufacturing sector.