The present study was conducted to investigate the relationship between gratitude and subjective well-being (life satisfaction, positive affect and negative affect) among university teachers. Data was collected from 206 teachers (129 males and 77 females) from GC University, Lahore and University of the Punjab, Lahore. It was hypothesized that gratitude would be positively related to subjective wellbeing and that age, gender and gratitude would be good predictors of subjective well-being. First of all demographic information was obtained from the teachers and then three questionnaires were employed. The Gratitude Questionnaire-Six Item Form (McCullough, Emmons, & Tsang, 2002) was used to assess the dispositional trait of gratitude. The cognitive aspect of subjective well-being was measured with Satisfaction with Life Scale (Diener, Emmons, Larson, & Griffin, 1985) and The Positive and Negative Affect Schedule (Watson, Clark, & Tellegen, 1988) was used to assess the affective component of subjective well-being. Correlation and regression analyses were carried out and the results supported the hypotheses that there is a significant positive correlation among the level of gratitude, subjective well-being and positive affect. Age and gratitude were found to be the significant predictors of subjective well-being, whereas gender was found to be a weak predictor of subjective well-being. It was also noted that older and more qualified teachers reported higher level of gratitude. The study ends with a conclusion, directions for future research and highlighting the theoretical and practical implications of the research.