The COVID-19 pandemic brought about a surge in telework, with many organizations using telework to continue operations. Teleworkers are subject to stress due to the demands of working from home. Despite the common view of stress as being detrimental, stress can also be beneficial. In this paper, we investigate two forms of stress, eustress (beneficial stress), and distress (detrimental stress) using a theoretically-derived model that includes antecedents and outcomes of eustress and distress. We test our model using data from a survey of 525 American teleworkers. Results indicate that job resources (autonomy, managerial support, and technical support), and personal resources (resilience and self-efficacy) affect eustress, while job demands (work overload, social isolation, and resource inadequacies) affect distress. Eustress is positively associated with job and telework satisfaction and negatively associated with telework exhaustion. Distress has the opposite effects. Our findings hold implications for researchers and practitioners.