We conceptualize that safety culture (SC) has a positive impact on employee�s safety performance by reducing their psychosocial hazard. A higher level of safety culture environment reduces psychosocial hazards by improving the employee performance towards safety concerns. The purpose of this study was to evaluate how psychosocial hazard mediates the relationship between safety culture and safety performance. Data were collected from 380 production employees in three states of Malaysia from the upstream oil and gas sector. Structural equation modeling was implemented to test the suggested hypotheses. The proposed model was evaluated using structural equation modeling. A stratified sampling with a Likert 5-point scale was used to distribute the questionnaires. Furthermore, the proposed model was tested using the simulation of the structural equation and partial. All hypotheses results showed strong support. According to our findings, all hypotheses are significant. A review of prior studies was used to select the items of the dimension for the data collection. Safety culture was assessed with psychosocial hazard to determine its direct and indirect impact on safety performance. Results suggested that to enhance safety performance (leading and lagging), psychosocial concerns in the workplace environments should be taken into consideration by employees. In addition, the findings showed that the psychosocial hazard fully mediates the relationship between safety culture and safety performance. © 2021 by the authors. Licensee MDPI, Basel, Switzerland.