This study examines the impact of mental health factors on workplace safety and employee performance in South Eastern Coalfields Limited (SECL), one of India's largest coal-producing public enterprises. In high-risk industries such as coal mining, the psychological well-being of employees plays a crucial role in ensuring safe work practices, reducing accidents and maintaining productivity. Research shows how stress, anxiety, fatigue, job dissatisfaction and risk-taking behavior affect safety compliance, decision-making ability, vigilance and general work efficiency. The findings show that poor mental health conditions significantly increase safety risks, leading to human error, absenteeism and compromised job performance. Conversely, supportive work environments, effective communication, mentoring mechanisms and stress management interventions contribute positively to employee morale, safety behavior and operational efficiency. The study underscores the need for SECL to prioritize mental health programs, behavioral training and workplace health policies to promote a safer, healthier and more productive workforce.