Psychological distress among nurses, the core healthcare workforce, is influenced by factors like financially contingent self-worth and work-family conflict. This study aimed to investigate the mediating role of work-family conflict in the relationship between financially contingent self-worth and psychological distress. The statistical population comprised nurses working in public hospitals in Mashhad. A convenience sampling was employed, and the sample size was determined to be 250 using G*Power software. This is an applied study, and methodologically, it follows a descriptive-survey design. Standardized questionnaires were used for data collection. Convergent and divergent validity confirmed the instruments’ validity, while composite reliability, Cronbach’s alpha, and McDonald’s omega evaluated their reliability. Data analysis was performed using SPSS 27 and AMOS 24. Results indicated a significant relationship between financially contingent self-worth and psychological distress. Furthermore, findings revealed a positive, significant relationship between financially contingent self-worth and work-family conflict, and between work-family conflict and psychological distress. Additionally, work-family conflict significantly mediated the relationship between financially contingent self-worth and psychological distress. In conclusion, a significant relationship exists between financially contingent self-worth and psychological distress, mediated by work-family conflict.